UAE Adopts Global Crypto-Asset Tax Transparency Deal

Abu Dhabi has formalised its participation in the Crypto-Asset Reporting Framework by signing the Multilateral Competent Authority Agreement, committing to automatic exchange of crypto-asset tax data with jurisdictions worldwide. The CARF regime in the UAE is to become effective in 2027, with the first exchanges of information scheduled for 2028.

The UAE’s Ministry of Finance, following its declaration last November of its intention to adopt CARF, issued an invitation to industry participants—such as advisory service providers, intermediaries, traders, custodians, and exchange platforms—to join a public consultation loop that opened on 15 September and will remain active until 8 November 2025. Input gathered is meant to shape regulatory rules tailored to both market needs and international transparency commitments.

Under CARF, crypto exchanges, wallet providers, and similar entities will be required to report client activities involving buying, selling, exchanging, and transferring digital assets. Relevant data will include customer identification, transaction volumes, and residency information. The framework aims to align the UAE with global tax-cooperation standards and counter tax evasion in the crypto sector.

The signing of the MCAA places the UAE among over 60 jurisdictions that have pledged to implement CARF by 2027, putting them in the group expected to begin cross-border sharing of crypto-activity tax reports in 2028. Other jurisdictions sharing the same timeline include the United States, Singapore, Hong Kong, and Malaysia.

Considerations raised during the UAE’s consultation emphasise the technical and operational challenges poised by CARF implementation. Industry stakeholders have flagged such issues as the need for robust data systems capable of handling high volumes, the privacy implications of cross-border data transfers, clarity on which digital assets fall under the regime, and how various regulatory bodies will coordinate compliance.