Stablecoin Regulation UAE Update: Stablecoin License Changes In Dubai

Ron Kotli

12 Jan 2026

The DFSA introduces new crypto and stablecoin guidance for crypto firms and stablecoin issuers.

The DFSA introduces new crypto and stablecoin guidance for crypto firms and stablecoin issuers (Tjeerd Braat / Unsplash).

DFSA Crypto Rules Are Amended For 2026

Acting on the back of several consultation periods, the DFSA (Dubai Financial Services Authority) has ruled on the future of the UAE crypto license.

The consultation feedback was released on their website over Christmas and comes into effect from today, under the general umbrella name Crypto Token Framework.

It appears there's a much stricter effort in general to close down and restrict underlying AML/KYC ambiguities, auditing, market-making, as well as on privacy coins.

Stablecoin Issuance Dubai

The way in which the Dubai regulator is progressing the regulation alters in comparison to the US, Europe and Asia broader frameworks.

Stablecoins in the DFSA crypto rulebook are referred to in the parameters of and labelled as a "Suitable Fiat Crypto Token", continuing the umbrella term first set back in 2022.

A Taxonomy Of DFSA Crypto Regime And Stablecoin Regulation

A Taxonomy Of DFSA Crypto Regime And Stablecoin Regulation (DFSA 2026).

However, the reserve assets now to be of the highest calibre in line with the latest crypto token framework requirements. As described in the new policy statement by the Dubai regulator:

(iii) [Reserves] are held in assets that are likely to maintain their value, including during periods of stress, are highly liquid, are appropriately diversified and carry minimal credit risk;

It is now official that the use of algorithmic stablecoins are considered prohibited, with an entire provision dedicated specifically to that in the new policy, similar as with privacy-based tokens.

Also, there are only 3 stablecoins that are officially approved as "suitable" in accordance with GEN Rule 3A.2.1: Circle's USDC, EURC and Ripple's RLUSD stablecoins.

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Certain pages may have disclaimers above to distinguish between submitted press releases, AI-assisted and sponsored content, as well as Stablecoin News exclusives. Sources used are shown below.

https://www.dfsa.ae/crypto

https://dfsaen.thomsonreuters.com/rulebook/rmi-4232025-general-module-gen-rule-making-instrument-no-423-2025

https://dfsaen.thomsonreuters.com/rulebook/policy-statement-fiat-crypto-tokens

https://dfsaen.thomsonreuters.com/rulebook/use-algorithmic-tokens-prohibited