Key Highlights of the New Framework
The Dubai Financial Services Authority (DFSA) has implemented an updated regulatory framework for crypto tokens, accompanied by a published FAQ document to assist businesses in understanding and applying the new rules effectively.
Under the revised regime, regulated entities within the Dubai International Financial Centre (DIFC) can now independently select which crypto tokens to support, without the need for prior DFSA approval, significantly enhancing market agility.
Scope of Application
The new rules apply to crypto tokens used primarily for payment or investment purposes, excluding NFTs, utility tokens, security tokens, and stablecoins. Stablecoins are permitted only for payment-related activities by asset managers.
Detailed Compliance Requirements
Entities offering crypto-related products must adhere to strict token governance requirements, including assessments of the token's technical infrastructure, regulatory status in other jurisdictions, global market size and liquidity, and its compatibility with compliance obligations.
- Evaluate the token’s technical security
- Review its regulatory treatment in other markets
- Assess market liquidity and adoption levels
- Ensure alignment with AML and other regulatory standards