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The United Arab Emirates has taken a decisive step toward embedding itself in the global tax transparency architecture by signing the Multilateral Competent Authority Agreement under the OECD’s Crypto-Asset Reporting Framework (CARF). This move underscores the country’s ambition to position itself as a trusted financial hub while aligning with international standards on digital asset taxation.
Under the new framework, the UAE will begin automatic exchange of crypto-asset tax data in 2028, with implementation scheduled for 2027. The CARF is designed to close regulatory gaps by requiring jurisdictions to share information on transactions and holdings in crypto-assets, much as the Common Reporting Standard (CRS) did for traditional financial accounts.
For the UAE, the agreement is both strategic and pragmatic. The nation has attracted significant crypto activity, from exchanges to institutional investors, by cultivating a relatively open environment. Yet without standardized reporting, authorities risked international criticism and potential exposure to financial blacklists. Signing CARF signals not only compliance but also foresight in mitigating reputational risk.
The Ministry of Finance has launched a public consultation, running from 15 September to 8 November 2025, inviting intermediaries, custodians, exchanges, and market participants to shape the domestic implementation. This consultative process is expected to strike a balance between regulatory stringency and the UAE’s objective of remaining an attractive destination for crypto innovation.
The timeline leaves stakeholders with a two-year runway before implementation, but the implications are clear: crypto is no longer exempt from the same transparency obligations as traditional finance. As CARF rolls out, market actors will face new reporting costs, operational adjustments, and enhanced scrutiny.
If successful, the UAE’s early adoption could set a benchmark in the region, demonstrating that embracing global tax transparency does not preclude maintaining competitive advantages in digital finance.
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