Ezat Alnajm on Preparing Crypto Wealth for Greater Tax Transparency

Tulpar Global Taxation advises on taxation, finance and digital assets, working with companies, family offices and foundations. Its work spans activities such as crypto mining, over-the-counter trading and exchanges, where understanding the underlying transaction is essential to determining the tax and compliance requirements.

For Ezat Alnajm, CEO of Tulpar Global Taxation, the growing integration of cryptoassets into the financial system places greater responsibility on investors and their advisers. A wallet balance is only part of the picture. Clients also need to explain how their wealth was created, where transactions took place and which jurisdictions may have a claim to tax the resulting income.

Speaking to Hubbis, Alnajm discusses preparations for the Crypto-Asset Reporting Framework (CARF), the limits of assuming that UAE residence means tax-free crypto wealth, and the difficulties that can arise when digital asset transactions meet conventional banking. His message to wealth managers is practical: understand the assets, keep the records and make sure the people handling them have the skills to do so.

Key Takeaways

• Reporting requires preparation: UAE CARF implementation begins in January 2027, with the first information exchanges in 2028 covering the preceding year.
• Tax residence matters: Investors need to understand their position across relevant jurisdictions, rather than assuming that paying tax in the UAE settles every liability elsewhere.
• Activity determines tax treatment: Personal investment, trading businesses, mining and services require separate analysis; the size of a profit alone does not decide the answer.
• Records need to explain the transaction: Contracts, wallet histories and supporting bank records help advisers establish the source and purpose of funds.
• Banking remains a point of friction: Alnajm highlights disputes where a crypto transfer and its corresponding fiat payment have been handled through different systems.
• Staff knowledge is a priority: He wants banks and wealth managers to develop the ability to assess crypto activity and use blockchain screening effectively.