As part of its commitment to international standards for tax transparency, the UAE participates in the automatic exchange of tax information with competent authorities in other countries through global initiatives such as FATCA and CRS.

Recently, the UAE has expanded this commitment to include reporting on crypto assets by adopting a framework established by the Organisation for Economic Co-operation and Development (OECD) for exchanging information on digital assets between tax authorities. This framework aims to close tax gaps and enhance transparency at a global level.

In November 2024, the UAE became one of 61 countries committed to implementing this framework, with a plan to start exchanging information for the year 2027 by 2028. To ensure effective implementation, the country has introduced strict measures to address non-compliance by crypto asset service providers and financial institutions, including:

·         AED 20,000 fine for submitting inaccurate information.

·         AED 50,000 fine for financial institutions that fail to report on time or in the prescribed manner.

·         AED 250,000 fine for deliberate violations or attempts to circumvent the rules, with the possibility of license suspension or revocation.

The government emphasizes that the scope of the framework will be clearly communicated to companies and commercial entities before its implementation. It also encourages all stakeholders to provide feedback through public consultations to ensure full readiness and effective compliance.

Through this framework, the UAE demonstrates its commitment to transparency and credibility while aligning its financial activities with international best practices.