Dubai Financial Services Authority Issues Regulatory Framework Q&A Document for Crypto Tokens, Clarifying Usage Conditions for Regulated Entities

Odaily News The Dubai Financial Services Authority (DFSA) has released an updated regulatory framework for crypto tokens, allowing entities regulated by the DFSA to independently choose which crypto tokens to use, without needing to apply for DFSA approval. This update took effect in January 2026.

The Frequently Asked Questions (FAQ) clearly states that crypto tokens encompass tokens used as a medium for payment or investment transactions, but exclude NFTs, utility tokens, or investment tokens such as security tokens and stablecoins. Stablecoins can only be used by asset management companies for payments; DFSA-licensed financial services companies can offer products related to crypto tokens if they follow the crypto token regime and meet relevant requirements (e.g., conducting suitability assessments under GEN Rule 3A.2.1); The suitability of a crypto token can be assessed based on several criteria, such as its characteristics, including its purpose, governance arrangements, and founders. Secondly, the regulatory status of the crypto token in other jurisdictions, including whether it has been evaluated or approved for use by a financial services regulator, as well as the crypto token's scale, liquidity, and trading history in the global market; Finally, the technology associated with the crypto token; and whether using the crypto token would hinder an individual's compliance with laws administered by the Dubai Financial Services Authority (DFSA). (Cryptopolitan)