Key Takeaways
- •Switzerland's Federal Council has officially approved the implementation of the OECD's Crypto-Asset Reporting Framework (CARF).
- •Crypto service providers will be required to start collecting user data in 2026.
- •The international exchange of tax information with 74 partner nations is scheduled to commence in 2027, aligning with Switzerland's commitment to global tax transparency.
New Tax Regulations for Digital Assets
Switzerland's government has adopted a significant piece of international tax regulation for digital assets, marking a shift in the cryptocurrency market's regulatory landscape within the nation. The Swiss Federal Council has approved substantial updates to the country’s Automatic Exchange of Information (AEOI) Ordinance, which includes the introduction of the new Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD).
The legal framework for CARF is set to take effect in Switzerland on January 1, 2026. However, the automatic exchange of data with foreign tax authorities will not begin until 2027. This means that crypto service providers must register and conduct due diligence checks starting in 2026, with the information collected during that initial year being shared in the subsequent year.
Closing Tax Loopholes with CARF
This initiative is part of a broader global effort to enhance tax transparency and combat cross-border tax evasion involving digital assets. The primary objective of the CARF is to address existing gaps in the current system and ensure that crypto-assets are subject to the same tax treatment as traditional financial instruments.
Under the new regulations, Reporting Crypto-Asset Service Providers (RCASPs), encompassing exchanges, brokers, and certain wallet providers, will be obligated to collect standard Know Your Customer (KYC) information from their clients. Furthermore, these entities will be required to submit annual reports to the Swiss Federal Tax Administration (FTA). These reports will detail user activities, including crypto-to-crypto trades, crypto-to-fiat transactions, and asset transfers.
The Swiss Parliament has recently given its approval to extend the AEOI framework to incorporate crypto-assets. Once fully implemented, the network for information exchange will encompass 74 partner jurisdictions, including all European Union member states and most G20 nations. Some major economies, such as the United States, China, and Saudi Arabia, are not currently part of this agreement as they have not fully adopted the OECD standard. However, the U.S. is anticipated to introduce its own version of these regulations in 2027.
Institutional Adoption and Swiss Crypto Hub Ambitions
In parallel developments, Switzerland-based FUTURE Holdings AG, an entity focused on institutional Bitcoin treasury and infrastructure, has successfully secured CHF 28 million in a significant funding round. This round was led by investors including Fulgur Ventures, Nakamoto, and TOBAM. The capital infusion is intended to facilitate the expansion of its platform, with the overarching goal of positioning Switzerland as Europe's leading hub for institutional Bitcoin finance. The company aims to bridge Bitcoin with traditional finance for corporate and financial clients under a stable regulatory environment. This substantial investment underscores the accelerating trend of institutional adoption in the digital asset space.