UAE Web3 Businesses Face Tax and Accounting Complexities with Digital Assets

The UAE's Web3 businesses are facing a new set of questions as digital assets move from personal wallets into corporate treasuries.

According to Ezat Alnajm, CEO of and an FTA Certified Tax Agent based at Innovation City, UAE, the technology may be fast, but the tax and accounting treatment is not always straightforward.

Companies are now receiving stablecoins from customers, holding tokens in treasury, paying expenses through wallets, and transferring digital assets between founders, operating companies, and related entities. On-chain, these transactions may look simple, but they can mean very different things in the accounts.

The payment method does not change the business transaction, Alnajm explains. If a UAE software company provides Dh100,000 of development services and receives payment in USDC instead of through a bank transfer, it is still earning revenue from software development. Only the method of settlement has changed.