The Dubai Financial Services Authority (DFSA) recently announced a significant decision—banning the trading and circulation of privacy tokens within the Dubai International Financial Centre (DIFC) framework. Why is this happening? The reason is straightforward: the anonymous nature of privacy coins makes it very difficult for regulators to trace the flow of funds, posing huge challenges to anti-money laundering (AML) and international sanctions compliance efforts. Not only are privacy coins banned, but auxiliary tools like mixers are also brought under regulation. This reflects the common attitude among major global financial centers regarding cryptocurrency regulation—compliance takes priority, and the balance point between privacy and risk control is shifting towards risk management.

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