Dubai bans privacy tokens and tightens regulation on stablecoins starting today

According to CoinDesk, the Dubai Financial Services Authority (DFSA) has banned the trading, promotion, and derivatives activities of privacy coins in the Dubai International Financial Centre (DIFC) starting today, citing their difficulty in meeting anti-money laundering and sanctions compliance requirements.

The new regulations also redefine stablecoins, only recognizing "fiat-backed crypto tokens" supported by fiat currencies and high-quality assets; algorithmic stablecoins like Ethena are not considered stablecoins. In addition, the DFSA has transferred the responsibility for token suitability assessments to licensed institutions, shifting the regulatory focus to compliance enforcement.