The Ministry of Finance of the United Arab Emirates has entered into a multilateral agreement that establishes a system for the automatic exchange of tax information regarding transactions involving crypto assets. This move aligns with the requirements and standards of the Crypto-Asset Reporting Framework (CARF), which has been developed to enhance transparency in the digital asset sector.
This is reported by Business • Media
Implementation of CARF and Timeline for System Launch
According to the signed regulations, the automatic exchange of tax information among countries that have joined CARF is expected to ensure international oversight and compliance of cryptocurrency activities with modern tax standards. The implementation of the system in the UAE is scheduled for 2027, with the first data exchange among participating countries set to occur in 2028.
Public Consultations and Regulatory Framework Development
In light of the signing of the multilateral agreement, the Ministry of Finance of the UAE has initiated public consultations. These will continue until November 8, 2025, and all interested market participants are invited to participate: custodians, traders, cryptocurrency exchanges, financial consultants, wallet providers, and other industry representatives. The main goal of the consultations is to develop clear, effective, and market-oriented regulatory rules that take expert opinions into account and meet the current needs of the industry.
“The agreement provides for the exchange of tax data on activities involving crypto assets among CARF signatories, which is expected to enhance industry transparency and ensure compliance with international standards.”
It was previously reported that one of the banks in the UAE announced the launch of a cryptocurrency trading service, indicating the active development of digital financial instruments in the country.