The United Arab Emirates (UAE) has taken a major step toward aligning its digital asset framework with international tax standards. The Ministry of Finance (MOF) announced that the country has officially signed the Multilateral Competent Authority Agreement (MCAA) on the Automatic Exchange of Information under the Crypto-Asset Reporting Framework (CARF).
What This Means
The agreement establishes a system for the automatic exchange of tax-related information on crypto transactions between participating jurisdictions. This move will strengthen international transparency, cooperation, and tax compliance in the fast-growing digital asset sector.
According to the MOF, the UAE will roll out the CARF framework in 2027, with the first exchange of crypto tax information set to begin in 2028.
Public Consultation Before Implementation
To ensure smooth adoption, the UAE has launched a public consultation to collect feedback from industry stakeholders such as:
- Crypto exchanges
- Custodians
- Traders
- Advisory firms
The consultation, which opened on September 15, will remain open until November 8, 2025.
Part of a Global Initiative
The UAE joins more than 50 jurisdictions that have already committed to implementing CARF, including:
- New Zealand
- Australia
- The Netherlands
- Switzerland (which recently approved automatic crypto tax data sharing with 74 countries)
- South Korea, which finalized its agreement earlier this month
This global initiative is expected to create a standardized approach to crypto tax reporting and reduce the chances of tax evasion through digital assets.
The adoption of CARF marks a turning point for the UAE, which is emerging as a leading hub for blockchain, crypto, and Web3 businesses. While the country has traditionally been seen as a tax-friendly environment, this agreement demonstrates its commitment to international compliance and cooperation.
By 2028, investors and businesses operating in the UAE will need to ensure full transparency of crypto-related tax data, as information will be automatically shared across borders.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.