Dubai Bans Privacy Tokens in Financial Free Zone Under New Regulations

Key Updates on Crypto Regulations in Dubai:

Privacy tokens like Monero and Zcash are effectively banned from Dubai's financial free zone due to new regulations requiring transaction transparency.
The Dubai Financial Services Authority (DFSA) has removed its list of recognized crypto tokens, opting for a firm-led suitability assessment based on criteria such as governance transparency and anti-money laundering compliance.
Regulations affect licensed firms rather than individual holders, aligning with mainland Dubai policy and similar frameworks in Europe.
The DFSA's guidelines identify privacy-enhancing technologies as negative indicators, incompatible with know-your-customer requirements.
The updated framework requires entities to assess tokens based on trading history, market liquidity, and governance transparency.
Approved stablecoins like Circle’s USDC and EURC remain available, marking them as the first regulated stablecoins in DIFC.
This regulatory move aligns with global trends, including the European Union's MiCA regulation, which will prohibit anonymous crypto transfers starting in 2027.