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The Dubai Financial Services Authority (DFSA), the emirate’s main financial regulator, has banned the use of private tokens in the jurisdiction of the Dubai International Financial Centre. The reasons cited are the risks of money laundering, financial crimes and compliance with international sanctions.
The ban also applies to such popular private tokens as Zcash (ZEC) and Monero (XMR). Such assets allow you to hide transaction history and maintain the anonymity of holders. Any transactions with private tokens, including trading, advertising, funds and derivatives, as well as the use of other tools and programs that ensure confidentiality, are prohibited. Under the new DFSA rules, firms that use cryptocurrency payments must be able to identify all elements of a crypto transaction, including the buyer and the initiator of the transfer.
The DFSA has also tightened its approach to stablecoins: they now only include tokens pegged to fiat currencies and backed by high-quality liquid assets. The regulator’s main requirement is that such assets must be able to satisfy redemption requirements even during periods of high volatility.
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Algorithmic stablecoins, such as Ethena, are considered less transparent in terms of operation and redemption. Therefore, Ethena will no longer be considered a stablecoin – the Dubai regulator classified the asset as a regular crypto token.
Private tokens are also on the verge of being banned in the European Union: it could be introduced in 2027. A few years ago, anonymous cryptocurrencies were banned in Australia and South Korea.
Anonymous tokens began to become especially popular in 2025. By January, the Zcash coin had risen to $540, and Monero recently rose to $565. Differences in views on privacy led to a split in Bootstrap and the departure of the team behind Zcash from the organization.
