The UAE’s Cabinet of Ministers approved the country’s participation in the Multilateral Competent Authority Agreement (MCAA) under the Crypto-Asset Reporting Framework (CARF) on 14 April 2025. This agreement facilitates the automatic exchange of tax information regarding crypto-asset transactions among participating countries.
The Crypto-Asset Reporting Framework (CARF) is a global initiative spearheaded by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes. It aims to facilitate the automatic exchange of information between countries to address growing tax evasion risks linked to cryptocurrencies and digital assets.
Under the framework, Crypto-Asset Service Providers (CASPs) will be required to gather user data, including tax residency and identification numbers, and report this information to local tax authorities. These authorities will then share the data internationally to support tax compliance, assessment, and monitoring efforts.
The CARF aims to create a standardized system for reporting tax data related to crypto-assets. By implementing this framework, the UAE aligns with global efforts to increase transparency and combat tax evasion in the rapidly growing crypto sector.
The UAE intends to start exchanging this information by 2028, as outlined in an OECD document on CARF commitments. This move further strengthens the UAE’s commitment to international tax cooperation and regulatory compliance in the cryptocurrency market.
