ARTICLE
15 January 2026

Dubai Updates Crypto Token Regulatory Framework

D
Dechert

Contributor

Dechert is the law firm that helps business leaders lead. For more than 150 years, we have advised clients on critical issues – from high-stakes litigation to first-in-market transaction structures and complex regulatory matters. Our lawyers in commercial centers worldwide are immersed in the key sectors we serve – financial services, private capital, real estate, life sciences and technology. Dechert delivers unwavering partnership so our clients can achieve unprecedented results.
The Dubai Financial Services Authority (DFSA) has formally enacted its updated regulatory framework for Crypto Tokens in the Dubai International Financial Centre (DIFC),1 as of January 12, 2026, following an October 2025...
United Arab Emirates Technology
Colin Sharpsmith’s articles from Dechert are most popular:
  • within Technology topic(s)
  • in European Union
  • in European Union
  • in European Union
  • in European Union
  • in European Union
  • in European Union
  • in European Union
  • in European Union
  • in European Union
  • with readers working within the Business & Consumer Services, Technology and Oil & Gas industries
Dechert are most popular:
  • within Real Estate and Construction and Strategy topic(s)

The Dubai Financial Services Authority (DFSA) has formally enacted its updated regulatory framework for Crypto Tokens in the Dubai International Financial Centre (DIFC),1 as of January 12, 2026, following an October 2025 consultation and three years of market monitoring since the launch of the original Crypto Token regulatory regime in 2022. The DFSA has said it has aligned the new rules with international developments and stakeholder feedback.

A central feature of the update is the transfer of suitability assessments from the DFSA to individual firms. The DFSA will no longer maintain a list of "Recognised Crypto Tokens". Instead, under the revised regime, each firm must now document and justify whether a given Crypto Token meets the DFSA's suitability criteria. In order to assist firms in conducting their assessments, the DFSA published supervisory guidelines on December 15, 2025.2

In parallel, the DFSA has introduced enhanced investor safeguards, adjusted conduct and operational requirements, and tailored reporting obligations.

For firms operating or considering operations in the DIFC, the revised framework demands a thorough review of internal policies, systems and controls relating to Crypto Tokens to ensure that they meet the DFSA's expectations.

Footnotes

1 The DFSA regime does not apply in the Emirate of Dubai outside the DIFC, which is subject to regulation by the Virtual Assets Regulatory Authority (VARA).

2 https://dfsaen.thomsonreuters.com/sites/default/files/net_file_store/Supervisory_Guidelines_on_Assessing_the_Suitability_of_Crypto_Tokens.pdf

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More