The Dubai Financial Services Authority has brought into force significant updates to its Crypto Token regulatory framework in strengthening market integrity and supporting innovation.

The DFSA announced that the updated framework follows its October 2025 consultation and marks a substantial evolution of the regime first introduced in 2022.

A central change has been the shift from DFSA‑led suitability assessments to firm‑led evaluations. Firms providing financial services involving crypto tokens must now determine—on a reasoned and documented basis—whether each token meets the DFSA’s suitability criteria. As part of this transition, the DFSA will no longer publish a list of Recognised Crypto Tokens. This change introduces greater industry responsibility while ensuring that firms develop structured assessment processes and maintain clear documentation supporting their determinations.

In addition to the new assessment model, the revised framework introduces enhanced investor‑protection measures, refined conduct and operational requirements, and proportionate reporting obligations aligned with current global digital‑asset market realities. These safeguards aim to ensure innovation in DIFC’s crypto ecosystem is matched with accountability, transparency and strong governance.

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