Starting 1 January 2027, the CRS 2.0 system will be implemented in the UAE. The Common Reporting Standard (CRS) allows tax authorities to collect information from financial institutions and automatically share it with other jurisdictions annually.
Based on the framework established by Federal Decree No. 48 of 2018 and Cabinet Resolution No. 93 of 2021, CRS 2.0 now covers electronic money, central bank digital currencies, and certain cryptocurrency activities. It also introduces additional audit and reporting requirementsto enhance tax transparency in the growing digital asset market.
From 2027 the CARF (Crypto Asset Reporting Framework) system will be implemented in the UAE, which standardizes the reporting of tax-related crypto asset transactions for automatic information exchange.
On 12 November 2025, the UAE carried out its first government transaction using the digital dirham, the national central bank digital currency (CBDC). The transaction was executed as part of the pilot phase of the Digital Dirham project using the mBridge platform. This development supports the CRS 2.0 and CARF systems by ensuring accurate digital asset information and facilitating its automatic exchange with other countries.
These initiatives, together with the digital dirham, strengthen the UAE’s reputation for financial transparency and governance and support global efforts to improve tax compliance and combat illicit financial activities.
