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    Swiss leaders plan to enforce global crypto reporting framework

    2024.05.16 | exchangesranking | 34onlookers
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    The highest authority in Switzerland issued a public consultation for its plans to adopt global standards for crypto tax reporting to “ensure equal treatment” as traditional assets.

    The Federal Council — a group of seven members that collectively head the Swiss government — intends to implement the Crypto-Asset Reporting Framework (CARF) to improve tax transparency.

    On May 15, the Federal Council launched a consultation paper to gauge public sentiment around joining the Automatic Exchange of Information (AEOI), a cooperation between international tax administrations to fight tax evasion. Switzerland’s extension into the AEOI is currently slated for Jan. 1, 2026.

    The Organisation for Economic Co-operation and Development (OECD) established AEOI and other initiatives for the Group of 20 (G20) nations, which were later extended to include other nations.

    Switzerland previously adopted the OECD’s Common Reporting Standard (CRS) in 2014, but it left out CARF, which regulates the handling of crypto assets and their providers. Planning to change that reality, the Federal Council said:

    “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.”

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

    By 2027, nearly 50 countries are expected to fully adopt the CARF regulations to mutually help fight money laundering.

    The Swiss federal authority intends to “close gaps in the tax transparency mechanism and ensure equal treatment with respect to traditional assets and financial institutions.”

    The consultation will run for over three months and end on Sept. 6.

    Related: G20 moves forward with international crypto framework

    In April 2024, Canada’s annual budget suggested that the country will implement the CARF for taxation by 2026 as well.

    The CARF would impose 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 sets in, Canadian individuals and businesses will be required to report transactions between crypto assets and fiat and crypto assets for other crypto assets to the Canada Revenue Agency.

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