The Ministry of Finance of the United Arab Emirates has signed a multilateral agreement to implement the automatic exchange of tax information regarding transactions with crypto assets in accordance with the Crypto-Asset Reporting Framework (CARF).
This is reported by Finway
UAE Joins the International CARF Agreement
The United Arab Emirates has become a participant in a multilateral agreement among competent authorities for the automatic exchange of information in the field of crypto assets. This step aims to enhance the transparency of the digital asset market and align it with international standards of tax regulation.
“The agreement provides for the exchange of tax data on activities involving crypto assets among the signatories of CARF, which is expected to strengthen the transparency of the industry and ensure compliance with international standards.”
Implementation Start and Public Consultations
The implementation of CARF in the UAE is scheduled for 2027. The first automatic exchange of information among the countries participating in the agreement will take place in 2028. This will enable effective monitoring of tax obligations related to cryptocurrency activities and contribute to the fight against tax evasion.
Alongside the signing of the agreement, the ministry announced the start of public consultations, which will last until November 8, 2025. Custodians, traders, exchanges, consultants, wallet providers, and all other interested parties are invited to participate in the discussions. The goal of the consultations is to create clear and effective regulatory rules for the crypto asset market, taking into account the views of experts and practitioners.
It is noteworthy that previously 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 region.