Swiss leaders plan to implement a global crypto reporting framework

The highest authority in Switzerland has released a public consultation for the plan to adopt global standards for crypto tax reporting to “ensure equal treatment” as traditional assets.

The Federal Council – the seven-member group that jointly leads the Swiss government – intends to implement the Crypto-Asset Reporting Framework (CARF) to improve tax transparency.

In the year On May 15, the Federal Council launched a consultation paper to gauge public sentiment on joining the Automatic Exchange of Information (AEOI), a cooperation between international tax administrations to combat tax evasion. Switzerland's AEOI extension is currently scheduled for January 1, 2026.

The Organization for Economic Co-operation and Development (OECD) has established the MENA and other initiatives for the Group of 20 (G20) nations; These were later expanded to include other countries.

Switzerland had previously adopted the OECD's Common Reporting Standard (CRS) in 2014, but left out the CARF, which regulates the treatment of crypto-assets and their suppliers. In planning to change that reality, the Federal Council said.

“The implementation of CARF expands the regulation of Switzerland's progressive crypto market and helps protect the integrity and reputation of the Swiss financial center.”

However, implementation of CARF requires parliamentary approval and cannot be based solely on responses to the consultation paper.

In the year By 2027, nearly 50 countries are expected to fully adopt the CARF rules to jointly fight money laundering.

The Swiss federal authority wants to “close loopholes in the tax transparency system and ensure equal treatment with traditional assets and financial institutions”.

The consultation will last over three months and will conclude on 6 September.

Related: G20 moves forward on global crypto framework

In April 2024, Canada's annual budget proposed that the country would implement CARF for taxes by 2026.

CARF imposes new reporting requirements on crypto asset service providers, such as cryptocurrency exchanges, crypto-asset brokers and dealers, and crypto-asset automated teller machine operators.

When the regulation is issued, Canadian individuals and businesses will be required to report transactions between fiat and crypto assets for crypto assets and other crypto assets to the Canada Revenue Agency.

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