UAE signs crypto tax accord, starts consultation on rules
United Arab Emirates adopts a global crypto-asset reporting standard and opens industry consultation on next-phase digital asset rules.
The UAE joined the Organisation's for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework (CARF), committing to automatic exchange of crypto-related tax data with over 50 jurisdictions starting in 2027. The country simultaneously invited feedback from crypto firms on rules for licensing and oversight.
The Ministry of Finance confirmed that the UAE will begin implementing CARF requirements in January 2026, ahead of the first scheduled data exchange in 2027. Under CARF, service providers such as exchanges and wallet operators must collect and share transaction data with tax authorities.
The ministry launched a public consultation aimed at refining the country's digital asset regulations. The consultation seeks input on licensing requirements, capital reserves, custody obligations, and operational standards for exchanges and custodians.
Officials said the feedback will help shape the UAE’s approach as it positions itself as a hub for compliant digital finance. The consultation period runs through the end of 2025, with final regulations expected in early 2026.
The Ministry of Finance confirmed that the UAE will begin implementing CARF requirements in January 2026, ahead of the first scheduled data exchange in 2027. Under CARF, service providers such as exchanges and wallet operators must collect and share transaction data with tax authorities.
The ministry launched a public consultation aimed at refining the country's digital asset regulations. The consultation seeks input on licensing requirements, capital reserves, custody obligations, and operational standards for exchanges and custodians.
Officials said the feedback will help shape the UAE’s approach as it positions itself as a hub for compliant digital finance. The consultation period runs through the end of 2025, with final regulations expected in early 2026.
The OECD finalized CARF in 2022 to address risks of offshore tax evasion in crypto markets. So far, 52 jurisdictions including EU member states, the U.K., and now the UAE have pledged to adopt the framework.
The reporting requirements apply to crypto exchanges, brokers, and other service providers operating in participating countries. These entities must track customer transactions and report relevant data to local tax authorities, who will then share information with other CARF participants.
For the UAE, the dual approach of embracing tax transparency and consulting with industry reflects efforts to balance global compliance obligations with maintaining competitiveness as a crypto hub. The country has attracted numerous crypto businesses through favorable regulations and infrastructure investments.
The consultation covers specific areas, including minimum capital requirements for different types of crypto service providers, custody standards for customer funds, and operational risk management requirements. Industry participants have until December 31, 2025, to submit feedback through the ministry's digital portal.
The reporting requirements apply to crypto exchanges, brokers, and other service providers operating in participating countries. These entities must track customer transactions and report relevant data to local tax authorities, who will then share information with other CARF participants.
For the UAE, the dual approach of embracing tax transparency and consulting with industry reflects efforts to balance global compliance obligations with maintaining competitiveness as a crypto hub. The country has attracted numerous crypto businesses through favorable regulations and infrastructure investments.
The consultation covers specific areas, including minimum capital requirements for different types of crypto service providers, custody standards for customer funds, and operational risk management requirements. Industry participants have until December 31, 2025, to submit feedback through the ministry's digital portal.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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