In a significant move signalling a maturation of the region’s cryptocurrency market, the Dubai Financial Services Authority (DFSA) has eliminated its list of recognised crypto tokens. Effective from January 12, the update shifts the responsibility of risk assessment directly onto the financial services companies o
erating within its jurisdiction, aligning Dubai’s framework more closely with global standards.
The list, first introduced in 2022, included major tokens such as Bitcoin, Ethereum, and Litecoin and served as a practical reference point for the industry. With its removal, the onus is now on individual firms to conduct their own thorough due diligence.
A Shift Towards Corporate Accountability
Under the new guidance, companies must now determine and document whether each crypto token they handle meets the DFSA’s stringent suitability criteria. This move places greater demands on compliance and risk management teams but also offers more flexibility.
“For well-governed companies, the change brings greater flexibility and alignment with global regulatory practice, allowing innovation to proceed without waiting for formal token recognition,” crypto legal expert Praveena Pechetti told AGBI.
The DFSA has outlined detailed criteria for this assessment, which includes evaluating a token’s purpose, governance transparency, regulatory status in other jurisdictions, market liquidity, and underlying technology.
A Sign of a Maturing Market
Experts view this policy change as a deliberate evolution of Dubai’s regulatory environment, moving beyond a static list to a more dynamic and conduct-focused approach.
“The removal of the list reflects a deliberate maturation of Dubai’s regulatory framework. The DFSA is reaffirming that regulation attaches to conduct, controls and governance, not to assets by name,” said Elisenda Fabrega, general counsel at Brickken.
While the previous list was never a definitive measure of compliance, it provided an “early-stage comfort signal” to the market. The new framework demands a deeper level of engagement and responsibility from companies, reinforcing the integrity of the ecosystem.
Aligning with Global Regulatory Standards
This regulatory update brings Dubai in line with other major financial jurisdictions like the European Union and the United States. In Europe, the 2023 Markets in Crypto-Assets (MiCA) framework places responsibility on issuers and service providers to classify assets and maintain compliance controls. Similarly, proposed legislation in the US emphasizes firm-level accountability over pre-approved labels.
“The DFSA’s decision aligns Dubai with these regimes, reinforcing its position as a jurisdiction prioritising legal certainty, supervisory discipline, and institutional credibility,” Fabrega explained.
About the DFSA
The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai. The DFSA’s regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, and an international equities exchange and clearing house.
Source: AGBI
