Automatic Exchange of Information (AEOI) – Crypto-Asset Reporting Framework (CARF)
Background on the Crypto-Asset Reporting Framework (CARF)
Automatic Exchange of Information (AEOI) refers to the periodic and automatic exchange of information between tax authorities, based on international agreements, aimed at enhancing global tax transparency and combatting tax evasion. AEOI has been implemented primarily through the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA), among other frameworks, covering traditional financial accounts.
This scope was expanded through the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD) in response to the rapid growth of the crypto-asset sector. This growth had increasingly enabled crypto-asset transactions to take place outside the traditional financial intermediaries that existing frameworks such as the CRS were designed to capture, risking a significant and widening gap in tax authorities’ visibility over tax-relevant activities in the crypto-asset sector and potentially undermining the substantial progress achieved in global tax transparency over the past decade.
To address this gap, CARF establishes a standardised, internationally agreed mechanism for the systematic collection and automatic exchange of information relating to crypto-asset transactions, extending AEOI’s coverage beyond traditional financial accounts into the crypto-asset space.
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UAE Commitment
The UAE has formally committed to implementing the CARF, reflecting its continued alignment with international tax transparency standards led by the OECD. This commitment began with a public announcement of intent in November 2024, followed by the signing of the Multilateral Competent Authority Agreement (CARF MCAA) on 21 July 2025, based on the Convention on Mutual Administrative Assistance in Tax Matters (the Convention), to which the UAE is a party. The UAE subsequently conducted a public consultation on domestic implementation from September to November 2025, gathering feedback from experts and stakeholders, before ratifying the CARF MCAA pursuant to Federal Decree No. 60 of 2026 and enacting the relevant implementing instrument, with effect from on 1 January 2027.
CARF implementation is scheduled to go live in the UAE in 2027, with the first automatic exchange of information with partner jurisdictions expected in 2028, covering the 2027 reporting year.
CARF Multilateral Competent Authority Agreement (CARF MCAA)
The signing of the CARF MCAA on 21 July 2025 demonstrates the UAE’s continued commitment to international tax cooperation. It sets out the detailed modalities for the automatic exchange of information collected under CARF
The CARF MCAA is a multilateral agreement based on the Convention on Mutual Administrative Assistance in Tax Matters to which the UAE is a party. It establishes a basis for multiple forms of administrative assistance, such as exchange of information on request, automatic exchange of information, as well as other forms of intergovernmental administrative cooperation.
A bilateral exchange relationship under the CARF MCAA becomes effective only when:
- both jurisdictions have signed the CARF MCAA;
- both jurisdictions have submitted the required notifications under Section 7 of the CARF MCAA; and
- both jurisdictions have designated each other as intended exchange partners under the CARF MCAA.
Scope of CARF
CARF applies to individuals and entities that, as a business, provide services effectuating crypto-asset exchange transactions for or on behalf of customers, including by crypto-asset exchanges, brokers, dealers, and other intermediaries offering exchange services.
Similar to CRS, these individuals and entities will be required to collect tax residency and Taxpayer Identification Number (TIN) information on crypto-asset users and, in some cases, their beneficial owners, and report this information annually to the Ministry of Finance, along with details of transactions carried out on the user’s behalf.
Reportable transactions broadly cover exchanges between crypto-assets and fiat currencies, exchanges between different crypto-assets, and relevant transfers, including retail payment transactions above a specified threshold processed on behalf of merchants. Transactions will be reported on an aggregate basis by crypto-asset type and category, such as airdrops, staking income, or loans, along with details of transfers made to wallets not associated with a service provider or financial institution.
Relevant crypto-assets are broadly defined as digital representations of value secured using distributed ledger or similar technology, covering stablecoins, crypto-asset derivatives, and certain NFTs. Certain lower-risk crypto-assets are excluded from scope, as are Central Bank Digital Currencies and Specified Electronic Money Products, which will instead be captured under the expanded CRS.
CARF Documents and Reference Materials
Federal Decree No. 60 of 2026, ratifying Multilateral Competent Authority Agreement on Automatic Exchange of Information pursuant to the Crypto-Asset Reporting Framework ( CARF MCAA)
OECD Publication International Standards for the Automatic Exchange of Information in Tax Matters (published by the OECD in June 2023)
OECD Publication A Step-by-Step Guide to Understanding and Implementing the Crypto-Asset Reporting Framework
For More Information
For more information or queries related to CARF, please reach out to the Ministry of Finance or your regulatory authority: