Dubai, which has recently attracted attention with its positive steps regarding cryptocurrencies, has made a surprising move.
Accordingly, the Dubai International Financial Centre (DIFC) announced that it has completely banned privacy-focused cryptocurrencies in the financial markets within its jurisdiction.
Dubai’s financial regulator, the DFSA, has announced a complete ban on privacy tokens in the Dubai International Financial Centre, citing money laundering and compliance risks.
The bans are being introduced under the “Crypto Token Regulatory Framework,” which will come into effect on January 12th, and it has also been stated that the responsibility for token approval processes has been transferred from the institution to the companies.
At this point, the country regulator will focus on compliance with global regulations rather than token approval processes. With this change, instead of publishing a list of approved tokens, the DFSA will now require licensed firms to evaluate and document whether the cryptocurrencies they offer are compliant.
Dubai’s ban comes as a renewed surge in market interest in privacy-focused cryptocurrencies. In recent days, privacy-oriented altcoins like Zcash (ZEC) and Monero (XMR) have been making headlines with their price increases.
The DFSA also narrowed the definition of stablecoins, adding that they will now focus on stablecoins backed by fiat currencies and high-quality assets.
*This is not investment advice.
