The Riffle
The Dubai Financial Services Authority (DFSA) has issued a policy statement outlining how Fiat Crypto Tokens are assessed for suitability within the Dubai International Financial Centre (DIFC). Released on 15 December 2025, the policy establishes a formal assessment framework focused on price stability, reserve quality, accountability, and transparency.
Alongside the assessment criteria, the DFSA has also published an approved list of Fiat Crypto Tokens that it has deemed suitable for use under GEN Rule 3A.2.1(2)(b) of the DFSA Rulebook. Importantly, the DFSA clarifies that inclusion on this list does not dilute or replace an Authorised Firm’s own regulatory responsibilities.
Key Highlights
1. Purpose of the Policy
The policy serves two key objectives
To explain the DFSA’s criteria for assessing whether a Fiat Crypto Token is suitable for use in or from the DIFC
To publish a definitive list of Fiat Crypto Tokens that have been formally assessed and approved by the DFSA
This framework brings greater clarity and consistency to how stable-value crypto assets are evaluated in the DIFC.
2. Core Assessment Criteria for Fiat Crypto Tokens
The DFSA assesses Fiat Crypto Tokens against a comprehensive set of requirements designed to ensure stability, investor protection, and market integrity.
Price Stability
Tokens must consistently maintain a stable value relative to the referenced fiat currency
Management and Quality of Reserves
The reserves backing a Fiat Crypto Token must meet stringent standards, including:
Full backing: Reserves must be at least 100% of the value of tokens in circulation
Matching denomination: Reserves must be held in the same fiat currency as the token’s peg
High-quality assets: Reserves must be highly liquid, appropriately diversified, resilient during market stress, and carry minimal credit risk
Daily valuation of reserve assets
Segregated custody with regulated banks or custodians in jurisdictions equivalent to the DFSA, including equivalent AML standards aligned with FATF requirements
3. Accountability and Transparency
A clearly identifiable person or entity must be legally responsible and liable to token holders
Issuers must publish monthly disclosures demonstrating continued compliance with reserve requirements
Published information must be verified by an independent and suitably qualified third-party auditor
These requirements aim to ensure ongoing transparency and reinforce market confidence.
4. AML Regulatory Equivalence
When assessing whether reserve custodians operate in equivalent jurisdictions, the DFSA may rely on credible external sources, including:
FATF mutual evaluations
Detailed assessment reports
Follow-up implementation reviews
This ensures reserve assets are held in jurisdictions with AML regimes that are both robust and effectively enforced.
The DFSA makes it clear that its assessment of a Fiat Crypto Token as “suitable” does not relieve Authorised Persons of their own regulatory obligations. Firms must continue to maintain adequate systems, controls, governance, and risk assessments when offering services or conducting activities involving approved Fiat Crypto Tokens.
Approved List of Fiat Crypto Tokens (as of 15 December 2025)
The DFSA has assessed the following Fiat Crypto Tokens as suitable under GEN Rule 3A.2.1(2)(b):
Circle Euro Coin (EURC)
Circle USD Coin (USDC)
Ripple USD (RLUSD)
Why This Matters
This policy marks a further step in the DFSA’s risk-based approach to digital assets, reinforcing that stable-value tokens must meet high standards of reserve quality, transparency, and accountability. For firms operating in the DIFC, the message is clear: regulatory approval of a token does not replace firm-level due diligence, governance, or compliance responsibilities.
What Firms Should Do Next
Review internal crypto-asset frameworks against the DFSA’s assessment criteria
Confirm governance, documentation, and oversight arrangements remain robust
Assess whether existing or planned crypto activities align with GEN Rule 3A requirements
Seek specialist regulatory advice where exposure to Fiat Crypto Tokens is material
