The Dubai Financial Services Authority (DFSA) has implemented a ban on privacy coins within the Dubai International Financial Centre (DIFC) as of January 12th. This move prohibits trading, promotion, and derivatives activities involving privacy coins, citing challenges in meeting anti-money laundering and sanctions compliance standards. Additionally, the DFSA has redefined stablecoins, now recognizing only those backed by fiat currency and high-quality assets. Algorithmic stablecoins, such as Ethena, are excluded from this definition. The DFSA has also shifted the responsibility for assessing token suitability to licensed institutions, focusing its regulatory efforts on compliance enforcement.