2026-01-12 14:21:44

Dubai tightens grip on digital assets—privacy tokens face outright ban

The emirate has announced strict new regulations targeting privacy-focused cryptocurrencies and overhauling its stablecoin framework. Privacy tokens will be prohibited entirely under the updated ruleset, signaling a clear shift toward enhanced transparency requirements.

Simultaneously, stablecoin issuers face significantly tightened compliance standards. The new rules demand enhanced reserve backing verification, stricter operational oversight, and more robust redemption guarantees.

This regulatory move reflects broader global trends where major financial hubs are cracking down on privacy mechanisms while simultaneously imposing stricter guardrails on stablecoins. Dubai's decision carries weight given its status as a regional crypto hub—expect other jurisdictions to follow suit.

For traders holding privacy tokens or relying on certain stablecoins, this warrants immediate attention. Regulatory clarity, while restrictive, can reduce systemic risk in the space.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
9
Repost
Share

Comment

0/400

0xSoulless

· 01-12 19:33

Privacy coins are directly banned, another wave of retail investors getting caught. Large funds have already exited, and retail investors are still trapped.

View OriginalReply0

GasFeeGazer

· 01-12 15:03

Are privacy coins directly banned? Dubai's approach is quite ruthless. --- Another major hub is tightening regulations, it seems the path for privacy is becoming increasingly difficult. --- The reserve backing verification for stablecoins is so strict, will more projects run away? --- Tsk, compliance is getting stricter, but how much can systemic risk really be reduced... it still ends up causing issues. --- Brothers holding coins need to react quickly; this wave of regulation is no joke. --- Transparency requirements are rigid, but at least you don't have to worry about being caught in a trap every day. --- Why does it feel like the whole world is learning Dubai's tactics? Are they trying to completely eliminate privacy coins?

View OriginalReply0

MerkleMaid

· 01-12 14:51

Are privacy coins being directly banned? Dubai's move is really fierce, gotta act quickly --- Another place implementing transparency measures... it seems privacy coins will eventually be phased out --- Why are stablecoin compliance restrictions so strict? Exchanges will have to scramble again --- With Dubai's move, other countries will definitely follow suit, the outlook is worrying --- Banning privacy coins is fine, but all the red tape around stablecoins is really troublesome --- Transparency is a good thing, but regulations are a bit too strict... --- So what should I do with the privacy coins I hold now? Just sell them off? --- The Middle East financial hub is like this, retail investors really need to be cautious

View OriginalReply0

LiquidationAlert

· 01-12 14:51

Privacy coins are directly banned, there's really nowhere to hide now... Alright, another former crypto paradise is turning into a regulatory hell, Dubai's move is ruthless. With this wave, stablecoins won't be easy either; going through the reserve verify process is a bit suffocating. They say "clarity reduce risk," but it sounds like freezing innovation. Wait, does this mean I need to quickly check what's in my wallet? The Middle East is also starting this, where else can others run to... Privacy coin holders are now really panicked. Dubai moves, and the whole world follows. Who can handle this pace?

View OriginalReply0

GweiTooHigh

· 01-12 14:50

Damn, another place banning privacy coins? Dubai is really turning around to embrace regulation... As for compliance, honestly, it's just trading freedom for security. Some people are happy, others are not. This wave will force privacy coin holders to cut their losses... Stablecoin days are also not easy. Another domino effect? It feels like the whole world is pushing in the same direction. Although I dislike regulation, I have to say... at least now we know where the rules are, which is better than being hit by a black swan. Privacy coins are still too sensitive; I knew this day would come... Dubai says ban, and it’s banned. That’s the power of a regional financial center. People shout for freedom, regulation moves silently forward, and the story is always the same.

View OriginalReply0

MEVHunterWang

· 01-12 14:50

Are privacy coins directly banned? Dubai really doesn't hold back. --- It's privacy coins again... I knew it would turn out like this. Regulatory crackdown is getting faster and faster. --- The compliance requirements for stablecoins are becoming increasingly absurd. It's hard to say which projects can withstand this storm. --- Dubai is leading this wave, and other places will definitely follow suit. We still need to keep accelerating to adapt. --- Transparency requirements are increasing. Who can really say how much systemic risk can be reduced? --- Friends in the crypto world should start clearing their holdings. A big storm is coming. --- Now it's all over for privacy tokens. I saw it coming a long time ago. --- Compliance, compliance. In the end, it just stifles truly innovative projects.

View OriginalReply0

WalletDetective

· 01-12 14:42

Privacy coins have been directly banned. Dubai is really going all out now... I thought it was just bluffing before.

View OriginalReply0

MetaverseVagabond

· 01-12 14:39

Are privacy coins doomed? Dubai's move is really fierce Another wave of regulation to cut leeks, same old trick Stablecoin compliance costs are going to explode... Wallets are going to be emptied Now it's all good, global central banks are working together to raid our home Privacy is a crime, transparency is innocent? Feeling more and more suffocated Basically, it's fear that the RMB and USD positions will be shaken, who cares Looks like I need to transfer assets quickly, or else it will be troublesome if frozen Dubai leading the way, other places will definitely follow, truly brilliant

View OriginalReply0

GasFeeCrier

· 01-12 14:35

Are privacy coins directly banned? Dubai's move is really tough; the whole Middle East might follow suit.

View OriginalReply0