Relief for crypto investors: Switzerland freezes the exchange of tax data until 2027

Switzerland is incorporating the CARF framework into its legislation next year. However, it has postponed its practical implementation until 2027.

The Swiss Federal Council has decided to incorporate the Crypto Asset Reporting Framework (CARF) Starting January 1st of next year, although the effective implementation of this regulation will be postponed until 2027 or even later. This means that the obligation to automatically transmit tax information on cryptocurrency accounts to other international authorities will not begin to apply from 2026; a measure that reflects the difficulties involved in harmonizing global regulations with national laws and ensuring that companies in the crypto sector can adequately adapt to the new requirements.

The CARF, established in 2022 by the Organisation for Economic Co-operation and Development (OECD), seeks to establish an international standard for the exchange of tax data related to crypto assets. Its purpose is to limit tax evasion and bring greater transparency to the rapidly growing market. 

The postponement of its effective application in Switzerland demonstrates that even countries with extensive experience in international financial cooperation face complex obstacles when implementing specific regulations for cryptocurrencies.

What is the Crypto Asset Reporting Framework (CARF)?

The Crypto Asset Reporting Framework, known as CARF, represents a significant advancement in the global regulation of cryptocurrencies and digital assets. Its purpose is Strengthen fiscal transparency and curb tax evasion, which has been difficult to control due to the decentralized and cross-border nature of these assets. 

Thanks to this standard, tax authorities in different countries can share information about cryptocurrency transactions, facilitating more accurate and coordinated tracking of these financial movements.

This initiative comes from the Organisation for Economic Co-operation and Development (OECD) in response to the rapid growth and complexity of the crypto ecosystem. CARF requires service providers, such as exchanges and digital custodians, to collect detailed user data and report international transactions to the relevant authorities. This limits the use of cryptocurrencies for illegal activities such as money laundering, terrorist financing, and tax evasion.

Furthermore, the framework fosters collaboration between countries through a system that automates the exchange of tax information, following a model proven successful in other financial sectors. In short, this regulation aims to consolidate a safer and more responsible environment, integrating crypto assets into global financial structures with more effective oversight.

Switzerland is fine-tuning its infrastructure to meet new international standards

Switzerland announced that, although the CARF rules will come into effect next year, the tax committee decided to temporarily halt negotiations to determine which countries will share information. According to the communicationThis pause is due to the need to create a robust and efficient infrastructure that enables the automatic exchange of data from accounts related to crypto assets. This ensures the country has a well-prepared technical and organizational foundation before activating the system.

In parallel, the government adjusted local tax legislation related to cryptocurrencies and implemented transitional measures to facilitate adaptation for domestic companies. These provisions offer a window of time and flexibility, allowing companies to comply with the new CARF technical and administrative requirements without difficulty.

In June, the Federal Council announced that data sharing will begin in 2027 and is focusing its efforts on ensuring everything is ready by then. This commitment reflects Switzerland's dedication to careful implementation and strengthens its position as a leader in digital finance. 

The expectation of the authorities, and of the industry in general, is that this process will foster a more transparent and globally connected ecosystem.

The CARF world map reveals different paces of implementation

Switzerland is among a significant group of nations that have decided to extend the deadlines for implementing the Digital Asset Reporting Framework, according to data of the OECD. 

In total, 75 countries committed to this scheme, and while 47 of them will begin exchanging information in 2027, another 27, including Canada, Singapore, and the United Arab Emirates, will do so a year later, in 2028. This alignment shows that Switzerland's move is in line with a shared pace among several key jurisdictions.

Finland, on the other hand, is moving more quickly and is preparing its plan to submit to Parliament before the end of the year, which would position it among the European pioneers in activating the automatic exchange of tax data on digital assets from 2026. 

Meanwhile, countries like Argentina, El Salvador, India, and Vietnam have yet to formally adopt the framework, highlighting how regulatory priorities and institutional capacities vary globally. For several experts, these differences reflect the uneven pace of a global effort to standardize tax transparency in the digital sphere.

Finally, the United States presents its own scenario, as the White House is evaluating proposals to join CARF, although its first data submissions are not expected until 2029, placing it behind other developed powers.

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