The UAE Has Signed the Crypto-Asset Reporting Framework (CARF)

What is CARF Crypto Tax Reporting?

CARF stands for Crypto-Asset Reporting Framework.
It’s a global standard developed by the OECD and G20 to make sure that crypto-assets are subject to the same transparency and tax reporting rules as traditional financial assets.
Essentially, it brings crypto into the international tax net.

The UAE Has Signed On

On 21 July 2025, the UAE signed a multilateral agreement under the CARF framework, committing to:

• • • Collect crypto transaction data from service providers
    • Share that data annually with other countries
    • Begin implementation in 2027, with the first exchanges of data expected in 2028

This step confirms the UAE’s active role in enforcing global crypto tax transparency.

Why is CARF necessary?

Crypto-assets, by design, can be moved and held without banks or central intermediaries.
This lack of oversight has made it difficult for governments to detect taxable activity.
CARF is intended to eliminate these blind spots by treating crypto like any other asset: visible, reportable, and taxable, and by integrating it into global tax enforcement systems.

What does CARF require?

Crypto platforms, including exchanges, custodians, wallet providers, and possibly even DeFi protocols, will be required to:

• • • Identify users and their tax jurisdictions
    • Collect and report specific transaction data
    • Share this data with tax authorities, who will exchange it with other jurisdictions under CARF agreements

In short: crypto transactions will no longer fly under the radar.

What does this mean for individuals?

As a crypto user or investor, whether you use centralized exchanges, hold wallets, or make crypto-based payments, your transaction data will likely be collected and reported.

Crypto earnings, gains, and flows will be visible to tax authorities both in the UAE and abroad. The era of crypto being treated as an “off-grid” asset is effectively over.

What does this mean for founders and businesses?

If your business interacts with crypto in any of the following ways:

• • • Holding crypto as an investment or on your balance sheet
    • Paying or receiving payments in crypto
    • Offering crypto-related products or services

… you may soon be subject to:

• • • New reporting and due diligence requirements
    • Cross-border information exchange obligations
    • Heightened scrutiny from regulators and tax authorities

The Risk of Doing Nothing

With CARF set to roll out, individuals and businesses must begin transitioning from informal practices to clear, structured compliance.

Maintaining anonymity is no longer a realistic option.

Instead, this is the time to:

• • • Review your crypto exposure
    • Organize your reporting and recordkeeping
    • Use legal and strategic tools to optimize your tax position
      Optimizing your tax obligations is fully legal when done transparently and in accordance with applicable laws.

Your Next Steps for UAE CARF Crypto Tax Reporting 

• • • Start organizing your crypto records and transaction history
    • Assess your exposure across jurisdictions
    • Review how your business engages with crypto
    • Seek professional guidance to ensure compliance in advance of the 2027 rollout