Cryptocurrency Reporting Survey: Investors Weigh In on New Regulations

The UAE Securities and Commodities Authority is asking investors to help shape new rules for crypto reporting. The country wants to implement the OECD's Crypto-Asset Reporting Framework (CARF), which would require crypto platforms to share transaction data with tax authorities worldwide. This puts the UAE among 61 countries committed to automatic information exchange by 2028.

The move comes as the UAE builds its position as a crypto-friendly jurisdiction while meeting international tax transparency standards. In 2022, the government designated the Securities and Commodities Authority as the main federal body overseeing virtual assets, except in financial free zones where other regulators have jurisdiction.

Here's how the new framework works: crypto service providers like exchanges and wallet companies must report certain transactions above $50,000. For smaller amounts, they only need to report the recipient, like a merchant. The system mirrors existing tax reporting standards like FATCA and the Common Reporting Standard, but extends coverage to digital assets.

**Why this matters for the crypto industry**

Traditional financial reporting often misses crypto transactions because many digital assets can be held and transferred without banks or central oversight. The CARF framework aims to close this gap by creating consistent reporting rules across participating countries.

For crypto businesses operating in the UAE, this means new compliance requirements. Companies will need to identify customers, track transactions above certain thresholds, and share data with tax authorities. But it also provides regulatory clarity in a jurisdiction that's actively courting crypto businesses.

**The broader context**

The UAE has been working to create what it calls a "conducive environment" for virtual asset businesses while building a comprehensive regulatory framework. The Central Bank handles crypto used for payments through its retail payment regulations, while the Securities and Commodities Authority oversees investment-focused digital assets like tokenized securities.

This dual approach lets the UAE attract crypto companies while showing international partners it takes financial compliance seriously. The public consultation runs until November 8, 2025, giving industry players time to provide input on how the rules should work in practice.

The framework represents a significant shift in how governments track crypto activity. Instead of trying to monitor decentralized transactions directly, regulators are focusing on the centralized services most users rely on - exchanges, wallet providers, and payment processors.

For investors, this means greater transparency but also more reporting requirements. The UAE's approach suggests it wants to remain competitive in attracting crypto businesses while meeting global standards for tax cooperation.