The UAE Securities and Commodities Authority (SCA) has recently released its Crypto Asset Reporting Framework (CARF) consultation paper, signaling the country’s commitment to global standards in the exchange of information for tax purposes. This move comes after the UAE joined the CARF framework, with plans for implementation in 2027 and data sharing with international tax authorities in 2028.
CARF aims to establish an international standard for the automatic exchange of crypto-asset-related information between tax authorities. Nearly 70 jurisdictions have committed to implementing CARF, with many preparing for their first information exchange in the coming years. The SCA believes that the CARF regulatory initiative will enhance the UAE’s governance standards and align it with global norms.
One key aspect of the CARF framework is the requirement for crypto intermediaries, such as exchange platforms and custodians, to report certain crypto transactions above $50,000. Transactions below this threshold are treated as transfers, with only the recipient being reported. The customer’s information is exchanged for transactions exceeding $50,000, in line with the OECD model.
The consultation paper also outlines strong measures that the UAE will take to address non-compliance with CARF regulations. Reporting Crypto-Asset Service Providers (RCASPs) and reportable users could face penalties ranging from AED 20,000 to AED 250,000 for inaccuracies, failure to submit reports, or violations of CRS regulations. In severe cases, licenses may be suspended or revoked.
However, there are concerns about the potential compliance burden on CASPs and privacy infringements associated with CARF. Some entities may look to jurisdictions with less stringent reporting requirements to avoid compliance, which could impact the UAE’s reputation as a crypto innovation hub.
In conclusion, the UAE’s adoption of the CARF framework demonstrates its commitment to global tax standards and transparent governance in the crypto-asset industry. Stakeholders are encouraged to provide feedback on the consultation paper by November 8th, 2025, to shape the future of crypto regulation in the UAE.