Dubai Bans Privacy Tokens in DIFC as Part of Crypto Regulatory Overhaul
Dubai's financial regulator has implemented a sweeping ban on privacy-focused cryptocurrencies within the Dubai International Financial Centre (DIFC), marking a significant tightening of the emirate's digital asset framework. The MOVE targets anonymity-enhanced tokens, citing concerns over anti-money laundering compliance and sanctions evasion.
The updated Crypto Token Regulatory Framework introduces stricter stablecoin definitions, explicitly excluding algorithmic models from qualifying as 'fiat crypto tokens.' In a notable shift of responsibility, licensed cryptocurrency firms will now bear accountability for approving and monitoring listed tokens, rather than relying on centralized regulatory approval.
Effective January 12, the new rules prohibit privacy tokens across all DIFC activities including trading, promotion, and derivatives. This regulatory shift comes amid renewed market interest in privacy-preserving assets, creating potential Ripple effects across exchanges operating in the region.