DFSA tightens token rules
Dubai’s DFSA rolled out 2026 reforms that move token assessments to regulated firms and clarify compliance for crypto activity in the DIFC — a push designed to give issuers clearer regulatory guardrails in Dubai’s financial free zone . The change could shorten onboarding time for compliant token projects while raising the compliance burden for others.
The DFSA’s amended Crypto Token Rulebook came into force on 12 January 2026, formalising the changes announced in December 2025. dfsa.ae The regulator’s Supervisory Guidelines set out five mandatory assessment criteria — token characteristics; regulatory status in other jurisdictions; market size, liquidity and trading history; technology and operational resilience; and whether use would impede compliance with DFSA law — that firms must apply to each token. dfsa.ae Fiat‑pegged “Fiat Crypto Tokens” remain subject to DFSA determination under a Policy Statement published in December 2025, and DFSA and market briefings cite recognised fiat tokens such as USDC and EURC (and industry write‑ups name RLUSD among approved tokens). dfsa.ae The DFSA published a Crypto Token FAQs document on 12 February 2026 and said that the FAQs followed robust market engagement, including a recent webinar that attracted more than 600 participants. dfsa.ae Supervisors now expect firms to keep “reasoned and documented” suitability files for every token use case, to publish their lists of suitable tokens where applicable, and to be ready for DFSA supervisory review under CP168 and the new Guidelines. dfsa.ae For fiat‑pegged tokens the DFSA’s policy and guidance demand robust reserve backing, daily valuation, segregated custody, independent verification and strengthened AML/CFT controls, while the DFSA’s rulebook continues to prohibit privacy‑enhancing and algorithmic tokens from DIFC regulated activities. khairallahlegal.com
