The Dubai Financial Services Authority (DFSA) has prohibited privacy tokens within the Dubai International Financial Centre (DIFC), citing their anonymous nature as incompatible with anti-money laundering and sanctions compliance. The ban also extends to privacy tools such as mixers. Additionally, the DFSA has tightened the definition of stablecoins, now only recognizing those backed by fiat currency and high-quality liquid assets. The responsibility for assessing token eligibility has been shifted to licensed institutions.