UAE forges global crypto tax deal, seeks industry input on new reporting rules
The United Arab Emirates is taking a significant step towards global financial transparency in the digital asset space, recently signing an international agreement for automatic crypto tax reporting. Simultaneously, the nation has opened an extensive public consultation, inviting industry stakeholders to help shape the practical implementation of these new rules, aiming to ensure they align with market needs as the UAE continues to solidify its position as a leading global crypto hub.
On Sunday, the UAE Ministry of Finance formalized its commitment by signing the Multilateral Competent Authority Agreement under the Crypto-Asset Reporting Framework (CARF). This follows an earlier announcement in November 2024 and sets the stage for a new era of digital asset oversight. The reporting requirements for crypto firms are slated to begin in 2027, with the first exchanges of tax information with international authorities expected to commence in 2028.
Developed by the Organization for Economic Cooperation and Development (OECD) in 2023, the CARF establishes a standardized mechanism for countries to automatically exchange tax-related data concerning crypto-asset activities. According to the Ministry, this framework “ensures that the UAE provides certainty and clarity to the crypto-asset sector while upholding the principles of global tax transparency.”
This move comes as part of the Emirates’ broader strategy to cultivate a robust digital asset ecosystem. It builds upon previous initiatives, such as the 2024 decision to exempt crypto transactions from value-added tax and Dubai’s efforts to establish clear regulatory guidelines for Web3 companies.
To guarantee that the new framework effectively serves the dynamic digital asset market, the Ministry has initiated an eight-week public consultation period, which will run until November 8. This consultation seeks direct feedback, views, and recommendations from crypto firms and service providers regarding potential impacts and areas that may require further clarification. The goal is to “develop clear and effective regulatory rules informed by the insights of experts and stakeholders, and aligned with market needs.”
Industry experts largely view this development positively. Nitesh Mishra, co-founder and CTO at hedging platform ChaiDEX, told Decrypt that the agreement offers “greater legal clarity and certainty to crypto activities in the UAE, making the environment safer for compliant investors.” He added that it “aligns the UAE with global tax transparency standards, boosting trust with regulators and international partners.” Mishra also highlighted that allowing “public input on the rules” means “the final regulations are likely to reflect market and investor needs,” which will in turn help to “attract institutional investors as the rules help establish a fair, well-regulated marketplace.”
Echoing this sentiment, Benjamin Young, a business setup expert at Aston VIP, commented that the UAE signing the agreement “reinforces the country’s commitment to global regulatory alignment and transparency in digital assets, while also helping strengthen investor confidence.” While he acknowledged that this will require local and international firms to ensure compliance with new reporting obligations, potentially increasing operational demands, he believes it “should contribute to a healthier long-term ecosystem.”
