The DFSA implements major updates to Crypto Token Regulatory Framework, enhancing market integrity and supporting innovation in DIFC

The Dubai Financial Services Authority (DFSA), the independent banking, financial services, and markets regulator of the Dubai International Financial Centre (DIFC), has today brought into force its updated regulatory framework for Crypto Tokens in DIFC. The enhanced rules strengthen the DFSA’s regime, provide greater clarity for market participants, and support the development of a safe, transparent, and well-regulated digital assets environment.

The introduction of the updated framework follows the DFSA’s consultation process in October 2025 and reflects the evolution of its approach since the launch of the Crypto Token regime in 2022. Over the past three years, the DFSA has actively monitored market developments and engaged closely with industry stakeholders and regulatory counterparts to ensure its rules remain robust, globally aligned, and supportive of innovation in DIFC.

A key change under the updated regime is the shift from a DFSA-led suitability assessment to a firm-led assessment. Firms providing financial services involving Crypto Tokens are now directly responsible for determining – on a reasoned and documented basis – whether each Crypto Token they engage with meets the DFSA’s suitability criteria. As a result, the DFSA will no longer publish a list of Recognised Crypto Tokens.

This reform is accompanied by enhanced safeguards for investors, refined conduct and operational requirements, and proportionate reporting obligations that better reflect the current state of the global digital assets market.

Charlotte Robins, Managing Director, Policy & Legal of the DFSA, said: “The DFSA’s enhancements to the Crypto Token regime reflect our progressive stance on innovation and proactive response to market developments and feedback. These updated rules provide firms with greater clarity and flexibility, and ensure that our regulatory crypto token regime remains aligned with international best practice. As digital assets continue to evolve, our objective remains clear – to maintain a transparent, and predictable regulatory framework that safeguards market integrity and enables sustainable and responsible market development in DIFC.”

For firms operating or seeking to operate in DIFC, the updated framework provides a clearer and more structured pathway for activities involving Crypto Tokens, including trading, fund and asset management, custody, advisory, and related financial services.

DFSA Digital Assets Webinar

To support market understanding of the updated framework and to provide a broader perspective on how the DFSA and DIFC support innovation in digital assets, the DFSA will host a webinar on 27 January 2026.

The session will provide an overview of the DFSA’s regulatory approach to Crypto Tokens, the evolution of the regime, and how the DIFC’s ecosystem supports responsible innovation in this space. It will be relevant for existing and prospective market participants seeking to better understand the regulatory environment, the DIFC ecosystem, and the opportunities available for firms considering establishing or expanding digital asset activities in the DIFC rules. To attend the webinar, register your interest here.

The new rules come into force today, 12 January 2026.