The regulatory authorities of Dubai International Financial Centre have recently taken action. The Dubai Financial Services Authority (DFSA) officially announced a ban on all trading activities, promotions, and derivatives operations related to privacy coins within the jurisdiction. Privacy coins like Monero and Zcash have been listed as restricted assets, with the official reason being that these assets do not meet anti-money laundering and sanctions compliance requirements—this logic is quite common in the context of tightening global regulations.

At the same time, the DFSA has also adjusted the definition of stablecoins, now only recognizing "fiat-backed cryptocurrencies" supported directly by fiat currency or high-quality assets, excluding algorithmic stablecoins. The regulatory stance is indeed tightening.

However, interestingly, the community's optimistic attitude towards privacy coins remains unchanged. On-chain data shows that recently, funds have been moving from Zcash to Monero, which may indicate that market participants still have confidence in the long-term prospects of privacy coins. Additionally, Monero's FCMP++ upgrade was confirmed in January, and technological development is ongoing. The tug-of-war between policy pressure and market enthusiasm makes the future of privacy coins worth continued observation.