"Dubai has spent years positioning itself as a hub for regulated digital finance. Yet its restrictions on privacy coins such as Monero ( XMR) and Zcash ( ZEC) clarify where the emirate is drawing the line between innovation and compliance. In January 2026, the Dubai Financial Services Authority (DFSA) prohibited anonymity-focused virtual currencies like Monero and Zcash from use on licensed venues within the Dubai International Financial Centre (DIFC)."
"The policy applies to trading, marketing and fund-related activities conducted by DFSA-authorized firms. While residents may still hold privacy coins in personal wallets, regulated crypto exchanges and financial institutions operating in the DIFC can no longer facilitate their use. This choice has reignited an old debate in crypto circles: How much privacy can regulated markets allow? This article discusses the scope of Dubai's ban on privacy tokens, the views of regulators on these tokens and why Dubai's step reflects a global pattern."
The Dubai Financial Services Authority prohibited anonymity-focused virtual currencies such as Monero (XMR) and Zcash (ZEC) from use on licensed venues inside the Dubai International Financial Centre in January 2026. The restriction covers trading, marketing and fund-related activities by DFSA-authorized firms while private ownership in personal wallets remains permitted. Privacy-by-default transaction features conflict with anti-money laundering and sanctions frameworks that require transaction visibility, making certain tokens structurally unsuitable for regulated intermediaries. Similar restrictions have appeared in Europe, the United States and parts of Asia. The policy signals regulated crypto growth will prioritize financial transparency while privacy-centric innovation moves outside institutional capital markets.
Read at Cointelegraph
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