Abu Dhabi has formalized its participation in the Crypto-Asset Reporting Framework by signing the Multilateral Competent Authority Agreement, committing to automatic exchange of crypto-asset tax data with jurisdictions worldwide. The CARF ( Crypto Asset Regulatory Framework) regime in the UAE is to become effective in 2027, with the first exchanges of information scheduled for 2028.
The UAE’s Ministry of Finance, following its declaration last November of its intention to adopt CARF, issued an invitation to industry participants—such as advisory service providers, intermediaries, traders, custodians, and exchange platforms—to join a public consultation loop that opened on 15 September and will remain active until 8 November 2025. Input gathered is meant to shape regulatory rules tailored to both market needs and international transparency commitments.
Under CARF, crypto exchanges, wallet providers, and similar entities will be required to report client activities involving buying, selling, exchanging, and transferring digital assets. Relevant data will include customer identification, transaction volumes, and residency information. The framework aims to align the UAE with global tax-cooperation standards and counter tax evasion in the crypto sector.
The signing of the MCAA places the UAE among over 60 jurisdictions that have pledged to implement CARF by 2027, putting them in the group expected to begin cross-border sharing of crypto-activity tax reports in 2028. Other jurisdictions sharing the same timeline include the United States, Singapore, Hong Kong, and Malaysia.
Considerations raised during the UAE’s consultation emphasise the technical and operational challenges poised by CARF implementation. Industry stakeholders have flagged such issues as the need for robust data systems capable of handling high volumes, the privacy implications of cross-border data transfers, clarity on which digital assets fall under the regime, and how various regulatory bodies will coordinate compliance.
The United Arab Emirates (UAE) has taken a major step toward regulating the taxation of digital assets. On September 20, 2025, the Ministry of Finance announced new measures under the Crypto-Asset Reporting Framework (CARF), aligning the country with global standards for tax transparency. These rules aim to make the UAE’s thriving crypto sector more secure, accountable, and investor-friendly.
The UAE signed the Multilateral Competent Authority Agreement (MCAA) for automatic exchange of information on crypto assets.
Public consultation on CARF rules: Open until November 8, 2025
Final regulations issued: Expected in 2026
Implementation date: January 1, 2027
First automatic exchange of crypto tax data: 2028
This clear roadmap gives businesses, exchanges, and investors time to adapt their systems for accurate tax reporting.
Under the new CARF framework, entities that provide crypto services including exchanges, brokers, custodians, and wallet providers will be required to collect and share data such as, buying, selling, or exchanging Bitcoin, Ethereum, NFTs, and other digital assets, account balances and transaction histories, and customer identification and residency status.
The aim is to create a secure and transparent ecosystem, discourage tax evasion, and protect investors.
Crypto exchanges and wallet providers will need to upgrade their compliance systems, verify client data, and accurately report trades to meet the new CARF requirements. For traders and long-term holders, the rules promise clearer guidance on taxable events such as staking rewards, token sales, or NFT transactions, making it easier to plan ahead and stay compliant. Meanwhile, legal, accounting, and tax consultants are expected to play a key role in helping individuals and businesses structure their investments, optimize tax strategies, and ensure full adherence to the UAE’s upcoming crypto reporting obligations.
