Dubai bans security tokens and tightens regulations on stablecoins

2026-01-12 10:34:29

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Dubai’s financial regulators have implemented a major overhaul of the emirate’s cryptocurrency legal framework, officially banning privacy-focused tokens and significantly tightening regulations on stablecoins. Effective from 01/12/2026, the new regulations aim to align Dubai’s digital asset ecosystem with global standards on anti-money laundering and legal compliance.

All activities related to privacy-enhancing tokens—including issuance, trading, custody, and related services—are prohibited in the regulated market due to high risks of money laundering, terrorist financing, and sanctions evasion.

For stablecoins, only those fully backed by fiat currency and high-quality liquid assets are permitted to operate. Issuers must maintain a 1:1 audited reserve, publish clear redemption policies, and implement strict risk management governance. Algorithmic stablecoins are completely banned, and stablecoin service providers must obtain separate licenses from the UAE Central Bank.

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