T E R E S S A

Dubai has taken a major step toward reshaping its digital asset landscape after the Dubai Financial Services Authority (DFSA) introduced sweeping updates to its Crypto Token framework within the Dubai International Financial Centre (DIFC).
The new rules replace the old centralized approval model with a firm-led approach, shifting responsibility to licensed companies to evaluate and approve the tokens they wish to offer or use. This includes reviewing a token’s governance, technical structure, market use, regulatory compliance, and overall risk profile.
One of the most impactful changes is the ban on privacy-focused tokens such as Monero (XMR) and Zcash $ZEC . These assets, designed to hide transaction details, were deemed incompatible with anti-money laundering and counter-terrorism financing standards. In addition, stablecoins will now be subject to stricter reserve, backing, and governance requirements to reduce systemic risk.
While the framework adds more compliance pressure on firms, it also allows greater flexibility for innovation. By tightening oversight and increasing transparency, Dubai aims to protect investors, reduce misuse of digital assets, and reinforce its position as a trusted global crypto hub.

l$ZEC faced fresh pressure after its core development team resigned from the Electric Coin Company (ECC) following an internal governance dispute. ECC CEO Josh Swihart confirmed that the departures stemmed from disagreements with the project’s Bootstrap board, stating that recent governance changes significantly altered employment terms and conflicted with the company’s founding vision.
According to Swihart, the resignations were effectively a “constructive discharge,” with developers choosing to leave and form a new entity aligned with the original mission of Zcash. Despite the leadership shift, he emphasized that the Zcash protocol itself remains unchanged and fully operational. As an open-source network, Zcash continues to rely on miners, validators, and contributors rather than any single organization.
Market reaction to the news was swift. ZEC dropped more than 8% within 24 hours, falling from around $490 to approximately $454.9. Trading volume, however, rose by 12% to nearly $780 million, reflecting heightened activity amid uncertainty.
Despite near-term volatility, sentiment around privacy-focused assets remains mixed rather than entirely negative. Grayscale’s late-2025 Q4 report highlighted Zcash as a strong performer among privacy-centric altcoins, citing sustained demand for blockchain solutions that prioritize user privacy.