The Dubai Financial Services Authority (DFSA) has released an updated regulatory framework for crypto tokens, allowing DFSA-regulated entities to choose which crypto tokens to use without needing DFSA approval. This update took effect in January 2026. The FAQ clarifies that crypto tokens encompass tokens used as a medium of exchange for payments or investments, but exclude NFTs, utility tokens, or investment tokens such as security tokens and stablecoins. Stablecoins can only be used for payments by asset management companies. DFSA-licensed financial services companies can offer crypto token-related products if they comply with the crypto token regime and meet relevant requirements (e.g., a suitability assessment under GEN Rule 3A.2.1). The suitability of a crypto token can be assessed based on several criteria, such as its characteristics, including its purpose, governance arrangements, and founders. Secondly, the regulatory status of the crypto token in other jurisdictions, including whether it has been assessed or approved for use by financial services regulators, and the size, liquidity, and trading history of the crypto token in the global market. Finally, the technology associated with the crypto token; and whether the use of crypto tokens would impede an individual's compliance with the laws governed by the Dubai Financial Services Authority (DFSA). (Cryptopolitan)