Dubai's DIFC imposes complete ban on privacy tokens

The Dubai Financial Services Authority (DFSA) has completely banned privacy tokens within the Dubai International Financial Centre (DIFC), citing risks related to anti-money laundering and sanctions compliance, CoinDesk reported. The measure is part of a broader overhaul of the emirate's cryptocurrency regulatory framework. Effective Jan. 12, the new rules prohibit the trading, promotion, fund management, and creation of derivatives involving privacy tokens. Under the revised framework, the responsibility for token approval shifts to individual firms, and the definition of stablecoins has been strengthened. The DFSA will now focus on supervision aligned with international regulatory standards rather than approving individual cryptocurrencies. The decision comes at a time when privacy coins such as ZEC and XMR have been regaining investor attention.