UAE to Join Global Tax Data Exchange for Digital Assets by 2028

Dubai: The UAE will begin sharing financial information related to digital assets and central bank digital currencies with other countries from 2028, in line with new international tax transparency rules announced by the Ministry of Finance.

The initiative aligns with global efforts led by the Organisation for Economic Co-operation and Development (OECD) to strengthen oversight of digital finance and ensure tax compliance across emerging asset classes.

Under the new framework, known as the Common Reporting Standard 2.0 (CRS 2.0), the system will take effect on January 1, 2027, with the first exchange of information scheduled for 2028. The update expands the existing Automatic Exchange of Information (AEOI) framework to cover electronic money, central bank digital currencies, and crypto asset activities.

According to the Ministry, the UAE’s adoption of CRS 2.0 and the Crypto Asset Reporting Framework (CARF) reflects the country’s ongoing commitment to international cooperation and transparency. The frameworks, developed by the OECD, aim to ensure that innovation in digital finance does not compromise global tax compliance.

“The decision reflects the UAE’s advanced position in various global competitiveness indicators and confirms the excellence of its financial system in terms of transparency and governance,” the ministry said in a statement.

Enhanced Oversight of Digital Finance

Under the revised rules, financial institutions and crypto service providers in the UAE will need to implement enhanced due diligence, auditing, and reporting procedures. This is designed to ensure that the rapid growth of digital assets does not create blind spots in global tax reporting.

The CRS 2.0 framework builds upon Federal Decree No. (48) of 2018 and Cabinet Resolution No. (93) of 2021, which established the UAE’s system for automatic exchange of tax information. The update extends that framework to cover tokenized and electronic assets, closing existing regulatory gaps.

Strengthening Global Cooperation

The ministry described the implementation of CRS 2.0 and CARF as a “significant milestone” in the UAE’s journey to uphold international tax transparency standards and enhance cooperation with global financial institutions.

Officials emphasized that aligning with the OECD’s updated standards reinforces the UAE’s reputation as a leading international financial hub grounded in good governance and compliance.

The move is also expected to boost investor confidence by promoting transparency and consistency in financial reporting while supporting the UAE’s broader strategy to foster responsible innovation and sustainable economic growth.

Global Context and Future Outlook

The OECD’s expansion of the Common Reporting Standard represents one of the most extensive updates to international tax cooperation since the framework’s introduction in 2014. More than 100 jurisdictions currently participate in the global exchange of financial data to detect and prevent tax evasion.

By extending these standards to digital assets and blockchain-based financial products, participating nations aim to create a unified global system for reporting and information exchange across all forms of value.

The UAE’s rollout of CRS 2.0 from 2027, followed by the first data exchange in 2028, underscores its commitment to transparency, responsible innovation, and continued collaboration with international organizations shaping the future of digital finance.