💰 Introducing New Crypto Taxes on Traders in UAE
The United Arab Emirates Ministry of Finance (MOF) announced plans for a global crypto tax initiative following its signing of the MCAA under the Crypto-Asset Reporting Framework (CARF).
CARF is designed to automatically exchange tax-related information regarding crypto asset activities among participating countries.
According to the MOF, the UAE aims to adopt the framework in 2027 and execute the first automatic exchange of information in 2028.
Public Consultation on CARF
Before implementation, the UAE initiated a public consultation to gather feedback from crypto exchanges, custodians, traders, and advisory firms. The consultation began on September 15 and will close on November 8, allowing stakeholders to influence CARF adoption locally.
Currently, over 50 countries have adopted CARF, enabling coordinated global regulatory reporting and monitoring of crypto taxes.
Also Read : Circle Enters Hyperliquid with USDC Launch as Stablecoin Competition Heats Up
🌍 CARF Expands Globally
Several countries have already aligned their regulatory systems with CARF:
- New Zealand, Australia, and The Netherlands are updating their digital asset tax frameworks.
- Switzerland recently passed legislation allowing the sharing of crypto tax data with 74 partner countries, most of which are G20 members.
- South Korea signed the CARF agreement on September 2, enabling the National Tax Service to coordinate with domestic exchanges for automatic crypto tax reporting. Authorities in Jeju City have already seized assets from users who failed to pay taxes.
