UAE Joins Global Crypto Tax Pact to Reinforce Transparency, Investor Confidence

The United Arab Emirates has taken a significant step toward global crypto tax transparency by signing the Multilateral Competent Authority Agreement (MCAA) under the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD). The move, announced by the Ministry of Finance (MoF) on September 15, 2025, mandates crypto exchanges, brokers, and wallet providers to report customer transactions, including buying, selling, exchanging, and transferring digital assets. Governments will then automatically share this data internationally, enabling tax authorities to track cross-border activities and ensure compliance with tax obligations. The UAE’s adoption of CARF aligns its regulatory standards with those already applied to traditional financial instruments, such as bank accountsUAE signs global agreement on crypto tax information exchange^[1].

The CARF framework, scheduled for implementation in 2027, will see the UAE begin sharing tax-related data with international partners by 2028UAE Signs Crypto Tax Reporting Agreement, Opens Industry Consultation^[2]. This timeline allows stakeholders to adapt to new reporting requirements, with the MoF launching a public consultation period from September 15 to November 8, 2025. The consultation, open to advisory firms, intermediaries, traders, custodians, and exchange platforms, aims to refine regulatory rules to reflect market needs and provide clarity for the crypto-asset sectorUAE Announces New Crypto Tax Reporting Rules for Investors^[3]. Benjamin Young, a business setup expert at Aston VIP, noted that the UAE’s alignment with global standards “reinforces its commitment to transparency and investor confidence,” though it may increase operational demands for firms to meet reporting obligationsUAE’s Regulatory Landscape vs. Global Standards^[4].

The CARF framework extends the UAE’s broader strategy to position itself as a global crypto hub. The nation has already exempted crypto transactions from value-added tax since 2024 and established clear regulatory guidelines for Web3 firms in Dubai. Industry experts, including Nitesh Mishra of ChaiDEX, emphasized that the agreement “brings legal clarity and certainty to crypto activities,” making the environment “safer for compliant investors.” By adopting CARF, the UAE joins over 65 jurisdictions in a coordinated effort to combat tax evasion and enhance transparency, a move that analysts believe will attract institutional investors seeking well-regulated marketsUAE Emerges as Global Crypto Powerhouse^[5].

The UAE’s regulatory approach also reflects its response to global initiatives like the EU’s Markets in Crypto-Assets (MiCA) framework and the U.S. SEC’s enforcement-driven model. While the UAE’s multi-regulator system—spanning the Securities and Commodities Authority (SCA), Virtual Assets Regulatory Authority (VARA), and other entities—differs from the EU’s unified approach, it mirrors MiCA’s emphasis on consumer protection and market integrity. The UAE has also aligned with Financial Action Task Force (FATF) guidelines to strengthen anti-money laundering (AML) measures, a critical step in addressing concerns about crypto misuse. The recent removal of the UAE from FATF’s “grey list” underscores its progress in meeting international compliance standardsUAE Crypto Regulations 2025^[6].

The implementation of CARF is expected to reshape the UAE’s crypto ecosystem. Crypto firms will need to invest in systems to collect and report client data, while investors must maintain accurate records of transactions. The MoF’s guidance highlights the importance of using compliant platforms to ensure proper reporting. Analysts anticipate that the regulatory clarity will foster innovation, with the UAE’s zero capital gains tax policy and Golden Visa program further enhancing its appeal to global talent and capital. With $34 billion in crypto inflows recorded between July 2023 and June 2024—a 42% year-on-year increase—the UAE is well-positioned to solidify its role as a leading crypto jurisdictionUAE Crypto Regulations 2025: Complete Guide^[7].