UAE signs on to OECD crypto reporting framework

The gulf state’s ministry of finance confirmed it had signed a multilateral competent authority agreement as part of the Organisation for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework (CARF).

The system establishes a mechanism for exchanging automatically tax information on crypto asset activities and comes into effect in 2027, with the first exchanges of information expected in 2028.

Under the CARF terms, crypto asset providers in the UAE will be required to collect and verify all customer information, including tax residency details and transaction information, and to share this data with participating jurisdictions.

More than 60 jurisdictions have signed up to implement the CARF framework by 2028, including the UK, the US, Canada, France and Germany.

The core obligations under CARF are standardised, but the framework allows for jurisdictions to implement certain decisions, such as those relating to reporting timelines and submission formats.  Accordingly, a consultation on the implementation of the new framework has been launched by the UAE Ministry of Finance and submissions can be made up until 8 November.

Jessica White, a financial regulation expert with Pinsent Masons in the UAE, said the implementation of the framework would have an impact on both service providers and investors and those impacted should consider submitting a response to the Ministry of Finance consultation.

She said: “For businesses, this means preparing for new compliance obligations and potentially updating onboarding and reporting systems”.

“For investors, it signals the end of crypto’s anonymity in cross-border tax matters, and for the UAE, it reinforces its commitment to being a transparent and globally integrated financial hub. Stakeholders should begin assessing their readiness and seek legal guidance to ensure compliance.”