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DFSA updates crypto token rules for firms operating in DIFC

Revised regulations, effective from January 2026, place greater responsibility on firms to assess crypto tokens while strengthening investor safeguards

DFSA Strengthens Crypto Regulation Framework
The revised framework builds on the regime first introduced in 2022 and represents the next phase in the development of the DIFC’s approach to regulating digital assets

The Dubai Financial Services Authority (DFSA) has issued updated rules governing the regulation of crypto tokens in the Dubai International Financial Centre (DIFC), with the changes set to come into force on 12 January 2026.

The revised framework builds on the regime first introduced in 2022 and represents the next phase in the development of the DIFC’s approach to regulating digital assets. The DFSA said the updates are designed to refine and strengthen oversight while reflecting developments in the crypto and digital assets market.

Under the updated rules, firms that provide financial services involving crypto tokens will be directly responsible for determining whether the tokens they engage with meet the DFSA’s suitability criteria. This assessment must be carried out on a reasoned and documented basis for each crypto token.

DFSA updates digital assets guidelines

As a result of this change, the DFSA will no longer maintain or prescribe a list of Recognised Crypto Tokens. Instead, firms operating in or seeking to operate in the DIFC will be required to undertake their own due diligence and suitability assessments as part of their regulatory obligations.

The updated regime also introduces enhanced safeguards for investors, alongside proportionate reporting requirements intended to align with current market practices and risks. The DFSA said these measures are aimed at maintaining appropriate levels of consumer protection while supporting innovation in the digital assets sector.

For businesses in the DIFC, the authority said the changes are intended to provide a clearer and more structured pathway for carrying out crypto token-related activities. The DFSA said the revised rules are designed to improve transparency and predictability for market participants, while ensuring firms remain accountable for the products and services they offer.

The authority said the strengthened framework supports the continued development of a safe and well-regulated digital assets environment within the DIFC. It added that the updated rules are intended to provide greater regulatory clarity as the market for crypto tokens continues to evolve, while maintaining robust standards of oversight.

The DFSA said further guidance will be available to help firms understand and implement the updated requirements ahead of their entry into force in January 2026.

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Kath Young

Kath Young is a reporter at Arabian Business.

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