UAE Begins Public Consultation on Crypto Tax Reporting Framework

The UAE Ministry of Finance has signed the Multilateral Competent Authority Agreement under the Crypto-Asset Reporting Framework (CARF). This follows the Ministry’s announcement in November 2024 about its plan to adopt CARF in the UAE. The agreement formalizes the UAE’s commitment to share tax-related information on crypto-asset activities with other participating countries.

CARF is designed to improve tax transparency and provide certainty for the crypto-asset sector. By participating in the international framework, the UAE ensures that its crypto market aligns with global standards while supporting the growth of this emerging sector.

Understanding CARF and Its Purpose

The Crypto-Asset Reporting Framework (CARF) sets clear rules for reporting transactions and holdings in crypto-assets. It enables the automatic exchange of information between tax authorities of different countries.

Under CARF, intermediaries, custodians, exchanges, and service providers are responsible for reporting crypto-asset activities. This reduces the risk of tax evasion and ensures that individuals and businesses meet their tax obligations. For the UAE, CARF provides both clarity and confidence to crypto stakeholders while demonstrating compliance with international tax standards.

Implementation Timeline in the UAE

CARF is scheduled to go live in the UAE in 2027, with the first exchange of information expected in 2028. This timeline gives stakeholders time to understand the framework and prepare for compliance.

By 2027, all entities involved in crypto-asset activities, including exchanges, custodians, traders, and advisory service providers, will need to adhere to the reporting rules under CARF. This approach allows the UAE to implement the framework in an organized and structured manner, minimizing disruptions to the crypto market.

Who Should Participate in the Consultation

The Ministry of Finance is inviting all stakeholders in the UAE crypto sector to provide feedback on CARF. This includes:

• Advisory service providers offering tax or legal advice on crypto-assets.

• Intermediaries facilitating crypto transactions.

• Traders and investors buying, selling, or holding crypto-assets.

• Custodians holding crypto-assets on behalf of clients.

• Exchange platforms operating in the UAE or serving UAE clients.

Feedback from these stakeholders will help the Ministry ensure the rules are practical, effective, and aligned with market needs. It also allows the identification of areas where further guidance may be necessary.

Public Consultation Details

The public consultation opened on 15 September 2025 and will continue for eight weeks until 8 November 2025. Stakeholders can submit their views through the designated consultation platform.

The purpose of this consultation is to:

• Collect expert opinions and industry insights.

• Identify potential challenges in reporting crypto-asset activities.

• Understand implications for businesses and investors.

• Develop clear and balanced regulations that are feasible and market-friendly.

The Ministry aims to use this feedback to craft well-informed rules that provide guidance to the crypto industry while meeting international reporting standards.

Benefits of CARF Implementation

Implementing CARF in the UAE offers several advantages:

1. Enhanced transparency: Ensures all crypto activities are properly reported for taxation.

2. Global compliance: Helps UAE businesses meet international reporting standards.

3. Market confidence: Provides legal clarity for investors, traders, and service providers.

4. Improved credibility: Demonstrates the UAE’s commitment to responsible financial governance.

5. Balanced regulation: Stakeholder input helps avoid overly complex or impractical rules.

Overall, CARF will strengthen the UAE’s reputation as a reliable and transparent hub for crypto-asset activities.

Global Context of Crypto Reporting

Countries around the world are increasingly adopting frameworks like CARF to regulate crypto markets. The OECD has played a central role in developing CARF and encouraging its adoption by member and partner countries.

By joining CARF, the UAE aligns itself with a global network of jurisdictions committed to fair and transparent taxation of crypto-assets. This fosters international trust and facilitates cross-border transactions and investments.

Expected Impact on the UAE Crypto Sector

The introduction of CARF is expected to have long-term positive effects on the UAE crypto industry. Companies and investors will benefit from:

• Clear guidelines for reporting transactions.

• Reduced regulatory uncertainty and potential penalties.

• Improved trust with international partners.

• Alignment with global best practices, enabling easier cross-border operations.

At the same time, businesses will need to update their reporting systems and comply with new procedures. The consultation helps the Ministry understand these challenges and address them effectively.

Ministry’s Commitment to Stakeholder Engagement

The Ministry of Finance emphasizes collaboration with the crypto sector. By engaging stakeholders early, it aims to design practical, clear, and effective regulations. All feedback submitted during the consultation will play a key role in shaping CARF implementation in the UAE.

Stakeholders are encouraged to participate actively, provide detailed feedback, and highlight areas where guidance or clarification is needed. This ensures regulations are balanced, support innovation, and promote transparency.

The UAE’s adoption of CARF marks an important step toward global compliance and tax transparency for the crypto-asset sector. With implementation planned for 2027 and information exchanges beginning in 2028, the Ministry of Finance is taking a careful and inclusive approach to regulation.

Through public consultation and stakeholder engagement, the UAE is ensuring that CARF is practical, clear, and aligned with international standards, supporting both the growth and credibility of its crypto market.