VAE signs Crypto Tax Report Agreement, the Industrial Consultation opens

The United Arab Emirates have committed themselves to automatic crypto reporting report with worldwide authorities and are launching an industrial consultation to insist the implementation details before the 2027 rollout.

The nation signed The multilateral agreement for the competent authority on the automatic exchange of information under the crypto-asset reporting framework, developed by the Organization for Economic Cooperation and Development in 2023, that Determines mechanisms For automatic exchange of tax-related information about crypto-asset activities between countries.

Crypto companies will have to comply with the new reports by 2027, whereby the VAE starts to share data with international tax authorities the following year.

“The framework establishes a mechanism for the automatic exchange of tax-related information about crypto-asset activities, which provides security and clarity to the crypto-asset sector, while the principles of global tax transparency are maintained,” the ministry said on Sunday.

The move comes as the Emirates continue to build its reputation as a global hub for digital assets, after the 2024 decision exempt crypto transactions free of tax with added value and the establishment of Dubai of clear legal guidelines for web3 companies.

To ensure that the framework meets market needs, the ministry has launched a public consultation of eight weeks up to and including 8 November.

The ministry asks feedback from crypto companies and service providers to share their views and recommendations about possible effects and areas that require further clarification.

The aim of the consultation “is to develop clear and effective regulatory rules that have been informed by the insights of experts and stakeholders, and tailored to market needs,” according to the statement.

Industry experts see the development as largely positive, with Niteshra, co-founder and CTO on hedging platform Chaidex, Decrypt The agreement “brings more legal clarity and security with crypto activities in the VAE, making the environment safer for conformers.”

“It coordinates the VAE with global tax transparency standards, which stimulates trust among supervisors and international partners,” he added.

Allowing “public input on the rules” means “the final regulations will probably reflect the market and investor needs,” said Mishra and will attract “institutional investors as the rules help set up a fair, well-regulated market.”

Benjamin Young, business setup expert at Aston VIP, said Decrypt That the VAE signed the agreement “the dedication of the country to global regulations and transparency in digital assets, while it also helps to strengthen the trust of investors.”

“It requires local and international companies that are active in the VAE to guarantee compliance with new reporting obligations,” he added, which “can increase operational requirements, but should contribute to a long -term healthier ecosystem.”