The DFSA has implemented some major updates to the Crypto Token Regulatory Framework, aiming to optimise market integrity and support development in DIFC.
Following this announcement, the institution brought into force its updated regulatory framework for Crypto Tokens in DIFC, aiming to strengthen DFSA’s regime, provide improved clarity for market participants, as well as support the development of a safe, transparent, and well-regulated digital assets environment.
In addition, the introduction of the updated framework follows DFSA’s consultation process in October 2025 and reflects the evolution of its approach since the launch of the Crypto Token regime in 2022. Over the past three years, the DFSA has also actively monitored market developments and engaged closely with industry stakeholders and regulatory counterparts in order to ensure that its rules remain robust, globally aligned, and supportive of innovation in DIFC.
Providing optimised clarity for market participants and supporting the development of a well-regulated digital assets environment
According to the official press release, a key change under the updated regime is the shift from a DFSA-led suitability assessment to a firm-led assessment. With this in mind, companies and firms providing financial services involving Crypto Tokens will now be directly responsible for determining (on a reasoned and documented basis) whether each Crypto Token they engage with meets the overall DFSA’s suitability criteria. As a result, the DFSA will no longer publish a list of Recognised Crypto Tokens.
This reform is accompanied by improved safeguards for investors, refined conduct and operational requirements, and proportionate reporting obligations that better reflect the current state of the global digital assets market. Furthermore, for firms that are operating or seeking to operate in DIFC, the updated framework is set to provide a clearer and more structured pathway for activities involving Crypto Tokens, including trading, fund and asset management, as well as custody, advisory, and related financial services.
The DFSA’s developments to the Crypto Token regime reflect the progressive stance on development and proactive response to market transformations and feedback. In addition, these updated rules are expected to provide firms with improved clarity and flexibility, as well as ensure that the institution’s regulatory crypto token regime remains aligned with international best practice. As digital assets continue to evolve, the objective will remain on maintaining a transparent and predictable regulatory framework that safeguards market integrity, while also allowing sustainable and responsible market development in DIFC.
