The United Arab Emirates (UAE) is confirming its ambition to become a global hub for digital assets. The latest step is the signing of a Multilateral Competent Authority Agreement on the automatic exchange of information under the Crypto-Asset Reporting Framework (CARF), developed by the Organization for Economic Cooperation and Development (OECD) in 2023. The agreement introduces mechanisms for the automatic exchange of information on cryptocurrency activities between countries and is to be fully implemented by 2027.
Article content:
New rules for crypto companies by 2027
According to the UAE Ministry of Finance, local and international companies will have to prepare for new reporting obligations that will take effect in 2027. From the following year, the Emirates will share data with global tax authorities. The aim is to provide certainty and transparency to the digital asset sector while strengthening trust in international tax cooperation.
“The framework creates a mechanism for the automatic exchange of tax-relevant information on cryptocurrency activities and ensures that the UAE provides clear rules for the digital asset sector while promoting the principles of global tax transparency,” said the ministry.
You may also like: Skrill review
Public consultation until November
To ensure that the rules reflect market needs as closely as possible, the UAE has launched an eight-week public consultation, which will run until November 8. The Ministry of Finance is inviting crypto companies and service providers to share their views, comments, and recommendations on the impact of the framework and areas that require further clarification.
The goal is to create “clear and effective regulatory rules based on the views of experts and stakeholders that will meet the needs of the market,” according to an official statement.
Don’t miss: Bitcoin and stocks in great danger
Next step after abolishing VAT on crypto
This step follows a 2024 decision by the Emirates to exempt cryptocurrency transactions from VAT and introduce clear regulatory guidelines for companies operating in the Web3 space in Dubai. The UAE is thus systematically strengthening its position as a regional and global hub for digital assets.
Expert reaction: more confidence and a more attractive environment
According to experts, this development is clearly positive for the market. Nitesh Mishra, co-founder and CTO of the ChaiDEX hedging platform, told Decrypt that the agreement “brings greater legal certainty and transparency to cryptocurrency activities in the UAE, making the environment safer for compliant investors.”
He added that alignment with global standards will strengthen the confidence of regulators and international partners: “The opportunity to publicly comment on the rules means that the final regulation is likely to take into account the needs of the market and investors. This should attract institutional investors and create a fair, well-regulated environment.”
Read more: FTMO review
