In brief
- The UAE Ministry of Finance signed the Multilateral Competent Authority Agreement under CARF on Sunday, following its November 2024 announcement.
- Implementation begins in 2027, with the first international tax information exchanges expected in 2028.
- An eight-week public consultation launched on September 15 invites all crypto stakeholders to weigh in on potential impacts and compliance requirements.
The United Arab Emirates has committed to automatic crypto tax reporting with global authorities, launching an industry consultation to hammer out implementation details before the 2027 rollout.
The nation signed the Multilateral Competent Authority Agreement on the Automatic Exchange of Information under the Crypto-Asset Reporting Framework, developed by the Organization for Economic Cooperation and Development in 2023, which establishes mechanisms for automatic exchange of tax-related information on crypto-asset activities between countries.
Crypto firms will need to comply with the new reporting rules by 2027, with the UAE beginning to share data with international tax authorities the following year.
“The framework establishes a mechanism for the automatic exchange of tax-related information on crypto-asset activities, ensuring that the UAE provides certainty and clarity to the crypto-asset sector while upholding the principles of global tax transparency,” the Ministry said on Sunday.
The move comes as the Emirates continues building its reputation as a global hub for digital assets, following its 2024 decision to exempt crypto transactions from value-added tax and Dubai’s establishment of clear regulatory guidelines for Web3 firms.
To ensure the framework meets market needs, the Ministry has launched an eight-week public consultation running through November 8.
The Ministry is soliciting feedback from crypto firms and service providers to share their views and recommendations on potential impacts and areas requiring further clarification.
The consultation “aims to develop clear and effective regulatory rules informed by the insights of experts and stakeholders, and aligned with market needs,” the statement read.
Industry experts see the development as largely positive, with Nitesh Mishra, co-founder and CTO at hedging platform ChaiDEX, telling Decrypt the agreement “brings greater legal clarity and certainty to crypto activities in the UAE, making the environment safer for compliant investors.”
“It aligns the UAE with global tax transparency standards, boosting trust with regulators and international partners,” he added.
Allowing “public input on the rules” means “the final regulations are likely to reflect market and investor needs,” Mishra said, and will help “attract institutional investors as the rules help establish a fair, well-regulated marketplace.”
Benjamin Young, business setup expert at Aston VIP, told Decrypt that the UAE signing the agreement “reinforces the country’s commitment to global regulatory alignment and transparency in digital assets, while also helping strengthen investor confidence.”
“It will require local and international firms operating in the UAE to ensure compliance with new reporting obligations,” he added, which may “increase operational demands but should contribute to a healthier long-term ecosystem.”
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.