The UAE will begin sharing financial information on digital assets and central bank digital currencies with other nations starting in 2028, according to a new international tax transparency framework announced by the Ministry of Finance. This decision aligns the country with global efforts led by the Organisation for Economic Co-operation and Development (OECD) to extend financial oversight to new asset classes.
New Global Tax Transparency Rules
The updated system, known as the Common Reporting Standard 2.0 (CRS 2.0), will officially take effect on 1 January 2027, with the first exchange of information scheduled for the following year. It expands the global framework for the Automatic Exchange of Information (AEOI) to include electronic money, central bank digital currencies, and specific crypto asset activities.
The Ministry of Finance stated the adoption of CRS 2.0 and the related Crypto Asset Reporting Framework (CARF) demonstrates the UAE’s ongoing commitment to international cooperation. The frameworks were developed by the OECD to ensure that advances in women’s leadership and digital innovation do not undermine global tax compliance.
In its announcement, the Ministry noted the decision “reflects the UAE’s advanced position in various global competitiveness indicators” and “confirms the excellence of the UAE’s financial system in terms of transparency and its adoption of the highest standards of governance.”
Enhanced Due Diligence for Service Providers
Under the revised rules, financial institutions and service providers that handle crypto assets will be required to apply more stringent due diligence, auditing, and reporting standards. This measure is designed to maintain global tax transparency as the digital asset sector grows.
Expanding on Existing Legal Frameworks
This update builds upon existing UAE legislation, including Federal Decree No. (48) of 2018 and Cabinet Resolution No. (93) of 2021, which established the country’s system for the automatic exchange of tax information. CRS 2.0 extends that structure to cover emerging forms of value exchange, closing previous gaps in the treatment of electronic and tokenised assets.
The Ministry described the updated frameworks as “a significant milestone in the UAE’s journey towards strengthening its commitment to the highest international standards of tax transparency.”
The Global Push for Digital Asset Oversight
Globally, the OECD’s new frameworks aim to address challenges from the rapid adoption of digital currencies and blockchain products. As these assets become more integrated into mainstream finance, governments are moving to ensure they are subject to the same transparency as traditional accounts. The introduction of CRS 2.0 is expected to bolster investor confidence in UAE markets by ensuring consistency in financial reporting, supporting the country’s strategy to accelerate green innovation and investment within a stable regulatory environment.
The OECD’s expansion of the Common Reporting Standard is one of the most significant updates to international tax cooperation since its introduction in 2014, with over 100 jurisdictions now participating. By extending this framework to digital assets, participating countries aim to create a unified global standard for reporting across all forms of value. The UAE’s implementation timeline marks another key step in its alignment with international financial governance and its role as a leading global financial hub.
