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The United Arab Emirates (UAE) has signed the Multilateral Competent Authority Agreement under the Crypto-Asset Reporting Framework (CARF). The agreement, which was also created by the OECD in 2023, automatically shares information about tax-related crypto-asset matters between member jurisdictions.
The Ministry of Finance said the implementations will begin in 2027. This means that the first international tax information exchanges will not arrive until 2028, giving companies enough time to prepare. The framework should offer certainty to the crypto sector while complying with international standards regarding tax transparency.
To ensure the regulations address the market's needs, the Ministry opened an eight-week consultation on September 15. Comments from crypto firms, service providers, and stakeholders are welcome until November 8. Participants have a chance to provide input on compliance, reporting, and areas of opportunity for clarification.
Officials said the consultation aims to create rules grounded in expert knowledge and market facts. Through engagement with the industry, the UAE aims to establish clear and practical guidelines that strike a balance between innovation and global transparency.
Players in the industry celebrated the move, saying it was a good step towards legal clarity and international harmonization. Nitesh Mishra, Co-founder and CTO of ChaiDEX, commented that the move is a good step in improving trust in the crypto environment in the UAE by making it clear what to report. He said that the agreement brings the nation in line with the international standard, thereby enhancing confidence among regulators and investors.
Benjamin Young, a business setup expert with Aston VIP, said that although the rules will raise operational demands for both local and international companies, they will also build long-term market confidence. He also stressed that meeting global transparency standards will help encourage institutional investors and create a healthier digital asset ecosystem.
The UAE has established itself as a regional hub for digital assets after taking steps such as removing crypto transactions from VAT and establishing regulatory frameworks for Web3 companies in Dubai. The new deal reflects its approach of balancing innovation with global responsibility.
