Catenaa, Monday, January 19, 2026-Dubai’s financial regulator has banned privacy-focused cryptocurrencies across the Dubai International Financial Centre, a statement by the regulators said.
It had also revised its crypto framework to strengthen anti-money laundering and sanctions compliance.
The updated rules, effective January 12, prohibit trading, promotion, fund activity, and derivatives involving privacy tokens.
Tools that mask transaction data, including mixers and tumblers, are also banned.
The Dubai Financial Services Authority has shifted responsibility for token approval from the regulator to licensed firms. Crypto companies must now assess, document, and continuously review the suitability of the assets they list.
Algorithmic stablecoins are excluded from the “fiat crypto token” category and will be treated as standard crypto assets, while only fiat-backed stablecoins meeting liquidity requirements qualify under the new framework.
The move aligns Dubai more closely with European Union standards under MiCA, which restrict anonymous crypto activity, while providing a clear regulatory path for licensed firms.
The regulator said the changes reflect industry feedback and growing maturity among DIFC-based crypto businesses.
The UAE continues to attract global crypto firms seeking regulatory clarity, as EU rules require stablecoin issuers to hold large portions of reserves in EU-based banks
A state-backed Abu Dhabi investment into Binance using a USD-pegged stablecoin underscores Dubai’s growing role as a regional hub for blockchain and digital finance.
