UAE Signs OECD Agreement on Automatic Exchange of Crypto Tax Data

The move positions the UAE among the early adopters of CARF, a framework that will serve as a global standard for reporting tax-relevant data on cryptocurrency holdings and transactions. According to the Ministry, the agreement underscores the country’s commitment to financial integrity, transparency, and alignment with international best practices.

The CARF was introduced by the OECD in 2022 in response to concerns that existing tax reporting systems did not adequately cover crypto-assets. Unlike older frameworks that applied mainly to bank accounts and traditional financial products, CARF extends reporting obligations to ensure that transactions involving crypto-assets are also included.

By signing the agreement, the UAE has committed to the automatic exchange of information on crypto-assets with other jurisdictions. The framework will require service providers, including intermediaries, traders, custodians, and exchange platforms, to collect and report transaction data to national tax authorities, which will then be shared internationally under the OECD standard.

The UAE’s decision is particularly significant given its position as a global center for digital assets. Cities such as Dubai and Abu Dhabi have attracted a growing number of crypto firms due to business-friendly regulations and specialized oversight bodies, such as the Virtual Assets Regulatory Authority and the Abu Dhabi Global Market. Joining CARF shows that while the UAE remains supportive of digital asset innovation, it is also prepared to align with international expectations on compliance.

Under CARF, crypto-asset service providers will need to identify customers, track transactions, and report detailed information. Reports will need to include the type of crypto asset involved, the annual totals of transfers, purchases, and sales, as well as identifying information about the account holder. Tax authorities in each participating jurisdiction will then share this data with their counterparts abroad, creating a global net of crypto tax transparency similar to the system already in place for bank accounts.

CARF will come into effect in the UAE in 2027, with the first exchanges of information scheduled for 2028, giving jurisdictions time to pass domestic legislation and service providers time to adapt their compliance systems.

CARF represents a coordinated international effort to ensure that crypto assets are not used to bypass tax reporting obligations. Without consistent global standards, digital assets could easily be transferred across borders to jurisdictions with weaker oversight. The framework addresses this challenge by requiring similar reporting obligations across participating countries, reducing the opportunities for regulatory arbitrage.

For crypto-asset service providers in the UAE, the agreement introduces new reporting obligations under CARF. These requirements will apply to intermediaries, traders, custodians, and exchange platforms, which must provide information on crypto-asset transactions to the national tax authority for international exchange under the OECD framework.

The adoption of CARF forms part of a broader strategy by the UAE to reinforce its role in global finance. In recent years, the country has stepped up measures against illicit financial activity, strengthened oversight of institutions, and engaged more deeply with international bodies. By aligning with CARF, the UAE signals to global partners and investors that it is serious about meeting international standards. This supports its ambition to remain both a leader in digital innovation and a responsible participant in the global financial system.

The UAE’s participation in CARF represents an important step in the international effort to extend tax transparency frameworks to cover crypto-assets. CARF will come into effect in the UAE in 2027, with the first exchanges of information scheduled for 2028. The next few years will be crucial for developing the technical and legal infrastructure required to implement the system. For the UAE, the agreement reinforces its position as a country that balances support for innovation with accountability and transparency. As digital assets continue to expand in scale and importance, such measures will remain central to the country’s long-term economic vision.