Dubai Financial Services Authority releases a Q&A document on the cryptocurrency regulatory framework, clarifying the conditions for regulated entities' use of cryptocurrencies.

Odaily Planet Daily reports that the Dubai Financial Services Authority (DFSA) has released an updated crypto token regulatory framework, allowing entities regulated by the DFSA to choose which cryptocurrencies to use without needing to seek approval from the DFSA. The update took effect in January 2026.

The FAQ clearly states that cryptocurrencies include tokens used as a medium of exchange or investment trading, but do not include NFTs, utility tokens, or investment tokens such as security tokens and stablecoins. Stablecoins can only be used for payments by asset management companies; financial service firms licensed by the DFSA that follow the crypto token regulations and meet relevant requirements (such as conducting suitability assessments under GEN Rule 3A.2.1) can offer products related to cryptocurrencies. Whether a crypto token is suitable can be evaluated based on several criteria, including its features, such as its purpose, governance arrangements, and founders. Additionally, the regulatory status of the crypto token in other jurisdictions, including whether it has been evaluated or approved by financial regulators, as well as the scale, liquidity, and trading history of the crypto token in global markets, are considered. Other factors include the technology associated with the crypto token and whether using the crypto token would hinder compliance with laws governed by the Dubai Financial Services Authority (DFSA). (Cryptopolitan)