UAE and Dubai Join CARF in 2027

The United Arab Emirates has committed to implementing CARF, with data collection beginning in January 2027. Dubai's emergence as a global crypto hub makes this a significant development for the industry.

Dubai's Crypto Ambitions

Dubai has actively positioned itself as a crypto-friendly destination:

• VARA (Virtual Assets Regulatory Authority) established in 2022
• Major exchanges like Binance obtained local licenses
• Crypto businesses relocating headquarters to Dubai
• Government support for blockchain and Web3 initiatives

Regulatory Landscape

The UAE has multiple crypto regulators depending on location:

• VARA: Dubai's dedicated virtual assets regulator
• FSRA: Abu Dhabi Global Market financial regulator
• SCA: Federal Securities and Commodities Authority

CARF implementation will require coordination across these authorities.

Why UAE Participation Matters

The UAE's CARF commitment is significant because:

• Dubai has become a relocation destination for crypto businesses
• The region attracts high-net-worth crypto investors
• Some viewed UAE as a potential "gap" in global tax reporting
• Participation signals alignment with international standards

What This Means for UAE-Based Platforms

Crypto exchanges licensed in the UAE will need to:

• Collect tax residency self-certifications from users
• Obtain foreign Tax Identification Numbers
• Report transactions involving non-UAE tax residents
• Submit annual reports to designated UAE authorities

Impact on Crypto Relocators

Individuals and businesses that moved to Dubai for crypto-friendly policies should note:

• Tax residency matters—UAE residents trading on UAE platforms may not be reported internationally
• Non-residents using UAE platforms will have their data exchanged
• The "tax haven" perception of Dubai for crypto is changing

Regional Context

Other Middle Eastern jurisdictions joining CARF in 2027:

• Saudi Arabia
• Bahrain
• Qatar
• Kuwait
• Oman