UAE to Implement OECD’s CARF by 2027: Crypto Firms Face Stricter Global Reporting Rules

The UAE is once again in the spotlight when it comes to global regulation -- this time, it’s about crypto compliance. In 2025, the UAE signed on to adopt the Crypto-Asset Reporting Framework (CARF), a new international standard created by the Organisation for Economic Co-operation and Development (OECD).

 

Think of CARF as the crypto world’s version of the Common Reporting Standard (CRS) for banks. It’s designed to ensure governments can track crypto transactions across borders, reduce tax evasion, and improve financial transparency. For the UAE, which positions itself as a global hub for digital assets, CARF is both a challenge and an opportunity.

 

What Exactly Is CARF?

 

CARF is a system for automatically exchanging information about crypto assets between countries.

 

Here’s what that means in practice:
• Exchanges, custodians, wallet providers, and other crypto platforms will need to collect detailed information about their customers and transactions.
• This information will then be reported to the UAE’s tax authority.
• Finally, the UAE will share this data with other countries that have also signed on to CARF.

 

In short, crypto transactions will no longer stay in the shadows -- at least not if you’re using regulated platforms.

 

Why the UAE Is Embracing It

 

The UAE has built a reputation as a crypto-friendly destination, especially with Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi’s Financial Services Regulatory Authority (FSRA) leading the way. But with growth comes responsibility.

 

By joining CARF, the UAE is sending a clear message:
• It wants to stay aligned with global financial standards.
• It wants to attract serious, institutional investors who value compliance.
• It wants to prove that it’s not a haven for tax evasion or illicit crypto flows.

 

For a country aiming to be a global fintech leader, this move makes perfect sense.

 

The Timeline You Should Know

 

The shift won’t happen overnight. Here’s how it looks:
• 2025 – Public consultation period (from September to November) for businesses and stakeholders to provide feedback.
• 2026 – Final rules expected to be published, giving clarity to the market.
• 2027 – CARF officially goes live in the UAE. Firms will need to start collecting and reporting data.
• 2028 – The first round of cross-border data exchange takes place.

 

That means companies still have time to prepare — but the clock is ticking.

 

What This Means for Crypto Companies

 

If you are running a crypto exchange, wallet service, or brokerage in the UAE, here’s the reality: compliance will become a core part of your business.

 

You’ll need to:
• Strengthen Know Your Customer (KYC) checks.
• Report transactions, account balances, and ownership details.
• Keep records safe, accurate, and ready for audits.
• Invest in technology and compliance teams to meet new standards.

 

This will add costs and complexity. Smaller firms may feel the pressure, while larger players could benefit from the trust and legitimacy CARF brings.

 

What About Crypto Users?

 

For everyday users, CARF means one thing: less anonymity.

 

If you’re buying, selling, or holding crypto through regulated UAE platforms, your information will likely be shared with tax authorities -- not just in the UAE, but potentially in your home country as well.

 

While privacy advocates may not welcome this, it could make the crypto space safer and more stable in the long run. It may also attract institutional money that has so far stayed on the sidelines.

 

Challenges Ahead

 

Of course, the road won’t be smooth. Some of the key challenges include:
• Compliance Costs – Not every crypto company can afford the systems and staff required to meet CARF rules.
• Data Privacy Concerns – Customers will want reassurance that their data is secure.
• Cross-Border Complexity – Crypto is global by nature, and coordinating standards across countries is easier said than done.
• Unclear Rules (for now) – The UAE still needs to finalise how CARF will work in practice.

 

The Bigger Picture

 

At the end of the day, CARF isn’t just about compliance -- it’s about the future of crypto.

 

By signing on, the UAE is proving that it wants to be a credible, regulated, and respected crypto hub. Yes, it will create new obligations for businesses and less privacy for users, but it also brings more stability, trust, and legitimacy to the industry.

 

For crypto companies in the UAE, the message is clear: start preparing now. Those who embrace compliance early will be better positioned when CARF goes live in 2027.