UAE Enters Global Agreement on Crypto Tax Data Sharing
As a result of the rising popularity of crypto in the UAE, it is necessary to take steps to ensure that the information is more transparent. To increase crypto security, the UAE has joined the Multilateral Competent Authority Agreement (MCAA) to exchange data automatically on crypto assets in order to enhance the safety of the crypto assets. This information was communicated by the Ministry of Finance. The Crypto-Asset Reporting Framework (CARF), created by the OECD, aims to make tax rules for crypto more transparent worldwide.
What is Needed
According to the CARF regulations, cryptocurrency exchanges, brokers, and wallet providers are required to provide data relating to user operations. For example, they must provide the complete information about purchases, sales, trades, or transfers of digital assets, so the transactions can be tracked.
Governments will exchange such information with each other, which will enable tax authorities to supervise crypto transactions across borders. In this way, they will be certain that individuals as well as businesses that are liable for tax are paying the right amount. Just to clarify, CARF is a framework to report on digital assets, just like it is for bank accounts under the existing global reporting rules. If you want to learn more about global cryptocurrency taxation, read our article on how cryptocurrency is taxed in different countries.
This step by the UAE comes after the Ministry announced in November 2024 that it would adopt the framework.
Timeline: The UAE plans to start applying CARF in 2027, with the first information exchange set for 2028.
Purpose: The framework creates a system that enables the automatic transmission of tax details relating to crypto activities between countries.
Background: This agreement supports global efforts to increase tax transparency and stop the misuse of digital assets.
The Ministry of Finance has also launched a public consultation on how CARF will be put into practice.
Stakeholders: Advisory firms, service providers, traders, custodians, and crypto exchanges are invited to share their views.
Process: The consultation started on 15th September and will continue until 8th November 2025.
Aim: The main aim of the UAE is to create clear regulations that match market needs as well as give guidance to the crypto industry.
