Zcash, Monero Prices Surge Despite Dubai’s Ban on Privacy Tokens
The Dubai Financial Services Authority (DFSA) has reportedly introduced a major amendment to its Crypto Token Regulatory Framework. Under the new rules, privacy tokens, including Zcash and Monero, are facing a fresh ban. Citing anti-money laundering (AML) and sanctions risk, the financial watchdog has imposed restrictions on the usage of privacy-focused cryptocurrencies.
Despite these regulatory restrictions, privacy tokens like Monero and Zcash are experiencing notable surges. This underscores the growing momentum of privacy coins and the importance of the idea of anonymity among crypto community members.
Dubai Tightens Crypto Rules, Bans Privacy Tokens
As part of strengthening its hold on crypto regulations, Dubai’s Financial Services Authority has taken a rigid stance, especially focusing on privacy tokens. The DFSA has effectively banned tokens like Zcash (ZEC) and Monero (XMR) from the emirate’s financial free zone.
Notably, the financial watchdog highlights that technologies like ring structures and shielded transactions, which are key to these cryptocurrencies, are against the regulatory standards of the country. As a result, the regulator warned that these assets could no longer be offered or traded within regulated Dubai-based institutions.
The DFSA’s crypto regulation amendments build on the crypto token regime introduced in 2022. It also follows an October 2025 consultation with industry stakeholders. According to officials like Houssam Kayyal of Fintech MENA, the updated rules envision strengthening market integrity and tackling illicit activities. The team posited that the city is prioritizing compliance and investor protection.
In its December announcement, the DFSA replaced the previous fixed list of approved crypto tokens with a firm-led suitability assessment model. This rule mandates licensed firms to assess each token based on factors such as governance transparency and adherence to anti-money laundering compliance standards.
Previously, the regulator maintained a fixed list of approved tokens, which included Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and ZetaChain. However, the revised scheme shifts this responsibility to licensed firms, requiring them to perform suitability assessments for each token.
The DFSA’s move also brings the Dubai International Financial Centre (DIFC) in line with broader regulatory standards across Dubai. In February, Dubai’s VARA prohibited the use of privacy tokens, hailing them as obscure cryptocurrencies.
Monero and Zcash Token Prices Soar
Despite Dubai’s ban on privacy tokens, leading players like Zcash and Monero are experiencing significant upticks. This indicates the overwhelming demand for similar tokens as investors prioritize privacy in the fast-moving crypto market.
As of press time, Zcash is valued at $400, marking a notable surge of 2% over the past 24 hours. However, the token has fallen by 18% and 8% over the past week and month, respectively.
Meanwhile, Monero is trading at $569, marking a more notable surge of 32% over the past 24 hours. Over the past week and month, the privacy token has increased by 32% and 38%, respectively.
This uptrend indicates the popularity and growing demand for privacy tokens like Monero and Zcash. Over the past few months, these tokens have experienced a notable rise in demand, especially due to the rise in crypto hacks and data leakages. Even during the largest-ever crypto market crash on October 11, 2025, these privacy tokens stood resilient, becoming a ray of hope in the red m
