UAE's Approach to Cryptocurrency: Enhancing Global Openness to Boost Investor Confidence
The United Arab Emirates (UAE) has officially pledged to uphold international crypto tax transparency by joining the Multilateral Competent Authority Agreement (MCAA) as part of the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF). By doing so, the UAE now joins more than 65 countries that have also implemented this protocol, creating a unified approach for the automatic sharing of tax data related to digital asset transactions. The UAE plans to put CARF into effect in 2027, and the first exchanges of data across borders are set for 2028.
According to the agreement, digital asset providers—including trading platforms, custodians, brokers, and wallet services—must submit comprehensive transaction information, including account details, customer identification, and residency information, to regulatory bodies. This information will subsequently be distributed to other nations participating in CARF, helping to prevent tax evasion and encourage international compliance. The UAE’s Ministry of Finance highlighted that this initiative is designed to give the crypto industry greater clarity while maintaining high standards of global tax transparency.
To tailor these laws to the needs of the market, the UAE conducted a public consultation lasting eight weeks, from September 15 to November 8, 2025, soliciting input from stakeholders such as investors, advisors, and service providers. The Ministry noted that this feedback period will help fine-tune the rules, balancing strict oversight with practical business needs to support a "secure, dependable, and enduring" crypto environment. The finalized regulations are anticipated in 2026, and all service providers will be required to comply starting 2027.
For those investing in crypto, the new regulations offer both potential advantages and obstacles. While greater transparency could draw institutional investors and strengthen the UAE’s status as a key crypto center, smaller platforms may encounter difficulties meeting the requirements. Industry experts like Nitesh Mishra from ChaiDEX have stated that the agreement provides "clear legal guidance," bringing the UAE in line with worldwide practices and increasing investor trust. Still, there are ongoing concerns about compliance costs and the protection of user data.
The UAE’s commitment to CARF is part of a wider global movement toward tighter digital asset regulation. Other similar systems, such as the Common Reporting Standard (CRS) and the U.S. Foreign Account Tax Compliance Act (FATCA), have already been broadened to cover cryptocurrencies in various countries. By taking part in this initiative, the UAE affirms its leadership in financial innovation while also addressing issues like tax evasion and money laundering.
