Key Takeaways:
- The UAE has signed the Multilateral Competent Authority Agreement on the Crypto-Asset Reporting Framework (CARF), setting implementation for 2027 and the first data exchanges in 2028.
- CARF, developed by the OECD, is designed to standardize the cross-border sharing of tax-related information on crypto assets, with over 50 jurisdictions already committed.
- The Ministry of Finance has launched a public consultation, open until November 8, 2025, to gather input from industry stakeholders on the framework’s impact and areas needing clarification.
- For traders and users, CARF will bring clearer tax rules but also tighter oversight, reduced anonymity, and greater reporting responsibilities as governments align crypto with global financial standards.
The United Arab Emirates has signed the Multilateral Competent Authority Agreement (MCAA) on the Automatic Exchange of Information under the Crypto-Asset Reporting Framework (CARF), the Ministry of Finance said on Saturday.
The move, aimed at providing “certainty and clarity” for market participants, follows the ministry’s announcement in November 2024 of its intent to implement the CARF framework for enhanced crypto tax transparency, and reinforces the country’s commitment to international tax compliance standards.
According to the ministry, the agreement is designed to establish a standardized mechanism for the cross-border sharing of tax-related data on crypto-asset holdings and activities, with plans to implement it in the UAE in 2027, and the first automatic exchanges of information expected in 2028.
In order to develop clear and effective rules, the ministry has invited a broad range of stakeholders, including financial advisors, intermediaries, trading platforms, custodians, and other crypto-sector participants, to provide feedback on the initiative.
Additionally, a public consultation on CARF implementation was launched on September 15 and will remain open until November 8, 2025, seeking to gather views on the framework’s potential impact and identify areas where further clarification may be needed.
A Dive into CARF
The Crypto-Asset Reporting Framework (CARF) is a global standard developed by the Organisation for Economic Co-operation and Development to enable the automatic exchange of tax-relevant information on digital asset transactions.
Since its launch, more than 50 jurisdictions have committed to adopting the framework, with some countries preparing to begin exchanges in 2027, while others, including the United Arab Emirates, are targeting 2028.
The list of early adopters includes major economies such as Australia, South Korea, Hong Kong, Singapore and Malaysia, showing how quickly governments are moving to set common standards and bring transparency to the crypto sector.
Despite CARF’s growing importance, the industry is already feeling the weight of compliance. Crypto exchanges, wallet providers and custodians face pressure to expand know-your-customer (KYC) checks, strengthen transaction monitoring and upgrade data infrastructure in preparation for mandatory reporting.
What This Means for Market Participants
For people who trade or use crypto, CARF implementation means the market will become more transparent and more closely monitored by tax authorities. Once the framework is applied, information about crypto activity will be shared automatically between governments, which will make it harder for individuals to keep their holdings or earnings out of sight.
For everyday users, this is likely to translate into clearer rules on how crypto should be reported for tax purposes, while leaving less room for anonymity. Traders and investors may find themselves needing to be more careful with record-keeping and reporting, as authorities will have a better view of transactions.
While CARF does not limit buying or selling crypto, it does signal a shift toward a more regulated environment. Users can expect more oversight, more paperwork, and fewer grey areas as governments align crypto activity with global financial standards.
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