- The Dubai Financial Services Authority updated crypto rules and stablecoin guidance effective today for use in the Dubai International Financial Centre.
- Tokens will no longer be assessed individually; the regulator provided a set of eligibility criteria instead, aligning with an approach used in ADGM.
- The changes ban privacy tokens and add provisions affecting asset management and crypto funds.
- The DFSA currently recognizes only Circle’s USDC and EURC, and Ripple’s RLUSD, treating recognition differently from licensing.
- The policy clarifies that eligible stablecoins must have reserves “denominated in the reference currency”, excluding coins with significant crypto or private credit reserves such as Sky and DAI.
Effective today, the Dubai Financial Services Authority updated its crypto rulebook and issued guidance on which stablecoins may be used inside the Dubai International Financial Centre. Regulators said the changes aim to speed up approvals and set clearer standards for token eligibility and stablecoin reserves.
Under the new rules, tokens will not be assessed one-by-one by the regulator. Instead, the DFSA published a list of criteria that tokens must meet to be eligible, a model similar to that used in ADGM. The change removes a time-consuming individual assessment and avoids implying regulator endorsements of specific tokens.
The update also imposes a ban on privacy tokens and introduces new provisions that affect asset managers and crypto-focused funds operating in the jurisdiction. These provisions adjust how crypto activities are regulated for institutional participants.
On stablecoins, the DFSA currently recognizes only Circle’s USDC and EURC, and Ripple’s RLUSD. The regulator uses recognition rather than a licensing model for stablecoins. Earlier rules already excluded algorithmic stablecoins from fiat crypto tokens.
The policy statement clarifies reserve requirements by stating eligible stablecoins must have reserves “denominated in the reference currency”. That clarification addresses other significant stablecoins such as Sky and DAI, which are not algorithmic but hold sizable crypto and private credit assets in their reserves.
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