UAE DFSA ( Dubai Financial Services Authority) the regulatory arm of DIFC is overhauling its crypto token regime through consultation paper published on October 1st 2025. DFSA is requesting replies no later than October 31st 2025.

The DFSA has issued Consultation Paper 168 (“CP 168”) proposing material enhancements to the DIFC crypto token framework. The headline change is a positive move away from the DFSA maintaining a central list of Recognised Crypto Tokens towards a firm-led ‘Suitable Crypto Token’ regime (excluding fiat tokens).

Firms would be responsible for assessing and continuously monitoring the suitability of tokens they use, listing those tokens on their websites, and reporting activity to the DFSA.

As per the consultation paper the fiat crypto tokens (stablecoins) would remain subject to DFSA-led suitability, and prohibited tokens remain unchanged (i.e., privacy tokens/devices and algorithmic tokens are prohibited).

The key proposals in consultation paper pertain to suitability of Crypto Tokens (excluding fiat) whereby there is a shift of responsibility to firms to determine, evidence, and publish token suitability.

When it comes to fiat Crypto Tokens ,DFSA retains suitability determinations and will publish a new Policy Statement to set out how the DFSA will assess the suitability of fiat tokens.

DFSA is also proposing to remove “Recognised Jurisdictions” provisions for crypto tokens, potentially broadening acceptable home jurisdictions, as well as remove the thresholds and restrictions applied to collective investment funds investing directly or indirectly in crypto tokens.

It is also proposing to remove the obligation to provide key features documents when arranging or providing custody for crypto tokens (other custody disclosures still apply), and to the limitations on the types of crypto tokens that can be included in the Net Asset Test.

As for fees, DFSA proposes to delete the application fee for recognition of a crypto token by DFSA, as DFSA recognition for non-fiat tokens will cease.

Finally in terms of reporting it plans to introduce a monthly Crypto Token information return via the DFSA e-portal and add this return to the Fixed Penalty Notice regime for late/non-filing.

In June of 2024, the Dubai Financial Services Authority (DFSA) also amended its crypto token regime. Amendments were related to the following areas, funds, custody, recognition of crypto tokens and financial crime.