- UAE will implement CARF by 2027, starting automatic info exchange in 2028.
- Public consultation seeks input from exchanges, traders, and custodians.
- UAE joins 50+ countries in a global push for crypto tax transparency.
The United Arab Emirates (UAE) has taken a major step toward global crypto tax compliance by signing the Multilateral Competent Authority Agreement under the Crypto-Asset Reporting Framework (CARF). The move aligns the UAE’s digital asset policies with international standards, signaling its commitment to transparency and cross-border tax cooperation.
CARF: A Global Tax Information Exchange
CARF, developed by the Organisation for Economic Cooperation and Development (OECD), sets a framework for automatically sharing tax-related data on crypto activities among participating countries. By joining, the UAE aims to strengthen regulatory oversight and ensure that crypto transactions are reported in line with global standards.
The UAE Ministry of Finance (MOF) confirmed that the framework will be implemented in 2027, with the first automatic exchanges of information scheduled for 2028. This positions the UAE alongside more than 50 jurisdictions already committed to CARF, including New Zealand, Australia, and the Netherlands.
Public Consultation Opens for Stakeholder Feedback
To prepare for CARF’s rollout, the UAE has launched a public consultation targeting exchanges, custodians, traders, and advisory firms. Opened on September 15 and running until November 8, the consultation invites industry participants to provide input, helping ensure the framework is practical and effective for local stakeholders.
This inclusive approach reflects the UAE’s focus on balancing regulatory compliance with industry needs, ensuring that the nation’s crypto sector remains both competitive and transparent.
Global Momentum Builds Around Crypto Reporting
The UAE joins a growing list of countries embracing CARF. Switzerland recently passed legislation to share crypto tax data with 74 partner countries, while South Korea has implemented measures to share tax information and crack down on delinquent taxpayers’ crypto holdings. These initiatives underline a global push for standardized crypto tax reporting, reducing opportunities for tax evasion and fostering cross-border accountability.
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As the UAE moves toward CARF implementation, the international crypto community can expect a more cohesive and transparent tax reporting ecosystem. By integrating local policies with global standards, the UAE is signaling that it intends to play a leading role in responsible crypto regulation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
