UAE Aligns Digital Asset Policies with Global Tax Standards

According to Cointelegraph, the United Arab Emirates (UAE) has taken a significant step towards aligning its digital asset policies with international tax standards by signing the Multilateral Competent Authority Agreement on the Automatic Exchange of Information under the Crypto-Asset Reporting Framework (CARF). This agreement, announced by the UAE’s Ministry of Finance (MOF), formalizes the country's commitment to implementing the Organisation for Economic Cooperation and Development’s (OECD) global regime for digital asset reporting. CARF establishes a mechanism for the automatic exchange of tax-related information on crypto asset activities among participating jurisdictions, enhancing international cooperation on transparency and tax compliance. The UAE plans to implement this framework in 2027, with the initial exchange of information expected to commence in 2028. In preparation for this, the UAE has launched a public consultation to gather feedback from industry stakeholders, including exchanges, custodians, traders, and advisory firms. This consultation began on September 15 and will conclude on November 8. The UAE joins 50 other jurisdictions committed to implementing CARF, paving the way for a global approach to crypto tax reporting. Countries such as New Zealand, Australia, and the Netherlands have also pledged to adopt the framework. Additionally, Switzerland has advanced its plans to automatically share crypto-related tax data with 74 partner countries, including most G20 nations, following the adoption of a relevant bill on June 6. In a related development, South Korea has finalized its agreement to implement CARF, as reported by local media outlet Nate on September 2. The country's National Tax Service will collaborate with local crypto exchanges and international organizations to automatically share tax information. Beyond participating in the global information exchange framework, South Korea has intensified efforts to address tax evasion involving crypto assets. On August 17, authorities in Jeju City took action to freeze and seize crypto assets from users suspected of evading tax obligations. This move underscores the growing global trend of integrating digital asset activities into existing tax compliance frameworks, reflecting a broader commitment to enhancing transparency and accountability in the rapidly evolving crypto landscape.