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16/05/24
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Switzerland Authority to Implement Crypto-Asset Reporting Framework
Switzerland’s Federal Council has released a public consultation stating plans to adopt international standards for cryptocurrency tax reporting such that crypto can be treated the same way as traditional assets.
The authority wants to apply the Crypto-Asset Reporting Framework (CARF) towards improving tax transparency. They have launched a consultation paper to understand public perception regarding joining the Automatic Exchange of Information (AEOI). The AEOI is a cooperation between tax administrations across the world to deal with tax evasion and Switzerland’s extension into it is scheduled for January 1, 2026.
The AEOI was established by the Organisation for Economic Co-operation and Development (OECD) for G20 nations, but other nations have been included. Ten years ago, Switzerland was able to adopt the OECD’s Common Reporting Standard (CRS), but CARF was not included.
The purpose of CARF is to regulate the handling of cryptocurrency assets as well as their providers. “Implementation of the CARF will expand Switzerland’s progressive crypto market regulation and help to maintain the credibility and reputation of the Swiss financial center,” said the Federal Council.
Switzerland’s bicameral parliament needs to approve the CARF implementation. The consultation will take three months and end on September 6. The aim of the Swiss federal authority is to “close gaps in the tax transparency mechanism and ensure equal treatment with respect to traditional assets and financial institutions.”
It is expected that almost 50 countries will fully adopt CARF by 2027 for mutual fight against money laundering. The yearly budget released by Canada last month shows plans to implement CARF by 2026.
According to the stipulations of CARF, crypto asset service providers (CASPs) such as crypto exchanges, crypto-asset brokers and dealers and crypto-asset ATM operators will be subjected to new reporting requirements.
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