The United Arab Emirates (UAE) has announced a big step toward global financial transparency by confirming that it will begin sharing digital asset tax data and central bank digital currencies (CBDCs) with other countries from 2028.
The initiative is led by the Ministry of Finance. In addition, it is a part of the alignment of the nation with new international tax transparency standards developed by the Organisation for Economic Co-operation and Development (OECD). In addition, this move reinforces the commitment of the UAE to maintain a secure, transparent, and globally compliant financial ecosystem.
Implementation of CRS 2.0 and CARF
The updated Common Reporting Standard 2.0 (CRS 2.0) will officially take effect on the 1st of January 2027. However, the first exchange of the financial data is scheduled for 2028. Moreover, CRS 2.0 expands the existing Automatic Exchange of Information (AEOI) framework to include emerging asset classes like electronic money, digital currencies, and crypto assets.
The OECD designated the Crypto Asset Reporting Framework (CARF) to complement the CRS 2.0 by ensuring that financial institutions dealing with crypto-related activities follow robust due diligence and reporting standards. Moreover, these frameworks mark a transformation upgrade in how nations monitor and exchange financial data in the age of digital finance.
According to the Ministry of Finance, the adoption of the UAE of these frameworks shows the advanced position of the UAE in global competitiveness indicators and the excellence of its financial system in terms of clarity and governance.
Stronger Oversight in the Digital Finance Era
Financial institutions and virtual asset services in the UAE will be required to follow the enhanced due diligence, auditing, and reporting obligations under CRS 2.0. Hence, it ensures that the rapid expansion of the digital asset sector does not create gaps in global tax oversight.
The Ministry stated that this update builds upon existing regulations, including Federal Decree No. (48) of 2018 and Cabinet Resolution No. (93) of 2021. Therefore, it laid the groundwork for the automatic exchange of tax information of the UAE.
By broadening the scope to cover tokenised and electric assets, the CRS 2.0 effectively closes the loophole that previously existed in the digital finance reporting. Hence, it leads to a more cohesive and transparent global financial framework.
Reinforcing the UAE’s Global Financial Leadership
The UAE government sees the implementation of these standards as a significant milestone in its journey toward enhanced international cooperation and tax transparency. Officials highlighted that aligning them with the OECD standards will further position the UAE as a trusted international financial hub and recognised for its good governance and regulatory excellence.
The Ministry also highlighted that this coordinated approach ensures consistency between traditional and digital financial systems. Hence, it fosters investor confidence and supports responsible innovation.
Global Context and Future Outlook of Digital Asset Tax Data
Since its introduction in 2024, the has enabled more than 100 countries to exchange financial information automatically to help detect and prevent cross-border tax evasion. Moreover, the launch of the CRS 2.0 and CARF is one of the significant updates in the history of international tax cooperation.
By including crypto assets and CBDCs, it aims to establish a unified reporting standard that ensures all forms of value exchange are covered under the same transparency principles. Moreover, this development is more than a regulatory update, as it is a strategic move to strengthen its global standing and attract sustainable investments. In addition, the Sharing Digital Asset Tax Data maintains a trusted and transparent financial environment in the era of digital transformation.
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