UAE Adopts CRS 2.0, Expands Tax Transparency in Crypto Era

The UAE is taking a major step to reinforce its position as a global financial hub by implementing the updated Common Reporting Standard (CRS 2.0) starting 1st January 2027. The first exchange of information under this updated framework will begin in 2028.

CRS 2.0, issued by the Organisation for Economic Co-operation and Development (OECD), expands the UAE’s financial reporting standards to cover electronic money, central bank digital currencies, and selected crypto asset activities. The move aligns with the UAE’s existing frameworks and ensures that growth in digital finance does not compromise global tax transparency.

The update builds on previous UAE regulations, including Federal Decree No. 48 of 2018 and Cabinet Resolution No. 93 of 2021, adding stricter auditing and reporting requirements. This alignment also matches the UAE’s timeline for the Crypto Asset Reporting Framework (CARF), demonstrating a coordinated approach to both traditional and emerging financial sectors.

By adopting CRS 2.0, the UAE not only strengthens governance and transparency but also makes itself a more attractive destination for foreign investment. The integration of advanced tax reporting standards reflects the country’s commitment to maintaining high global competitiveness and fostering investor confidence.

This initiative underscores the UAE’s strategic approach to balancing financial innovation with international compliance, ensuring the nation remains a leading hub for global finance and digital assets.