Dubai Financial Services Authority updates DIFC Crypto Token framework and makes firms responsible for token suitability assessments

The Dubai Financial Services Authority has brought into force an updated regulatory framework for Crypto Tokens in the Dubai International Financial Centre, shifting suitability assessments from a DFSA-led process to a firm-led obligation and discontinuing the DFSA’s list of Recognised Crypto Tokens. The new rules took effect on 12 January 2026. Firms providing financial services involving Crypto Tokens must now determine, on a reasoned and documented basis, whether each Crypto Token they engage with meets the DFSA’s suitability criteria. The updated regime also introduces enhanced investor safeguards, refined conduct and operational requirements, and proportionate reporting obligations, and is positioned as providing a clearer pathway for activities such as trading, fund and asset management, custody and advisory services. The changes follow an October 2025 consultation and update the DFSA’s Crypto Token regime introduced in 2022. The DFSA plans to host a digital assets webinar on 27 January 2026 to outline its approach to Crypto Tokens, the evolution of the regime and the DIFC ecosystem’s support for digital assets activity.