Switzerland is taking a significant step toward crypto asset transparency by moving to share digital asset information with 74 international partners. The Federal Council approved a bill that introduces an automatic exchange of information (AEOI) system for crypto, with implementation expected to begin in 2027.
All European Union countries, the United Kingdom, and most nations that make up the G20 are taking part in the exercise. In particular, neither the United States nor Saudi Arabia are a part of the agreement’s partner countries.
According to a statement posted by the Swiss Federal Government, the measure builds upon earlier legal groundwork laid earlier this year. The bill sets a framework to enable Swiss crypto service providers to report user activity to foreign tax authorities under specific conditions.
Crypto Data Sharing Will Follow OECD and EU Standards
In order to share data, Switzerland will analyze whether its partner nations satisfy the needed technological and legal standards. OTI is matched with the Organization for Economic Cooperation and Development’s (OECD) Crypto-Asset Reporting Framework under the name CARF.
Since the Federal Council indicated that cooperation would require countries to cooperate reasonably and stick to international guidelines, compliance with CARF is vital. Both countries involved should both ask for and give back information on a similar basis.
At the same time, the EU will enforce its part of the crypto AEOI with DAC 8, the Directive on Administrative Cooperation. Firms in the crypto industry that are based in the EU need to comply with cross-border reporting after this directive.
Because Switzerland is not fully integrated into the Common Reporting Standard for Europe, any Swiss crypto entities will have to transfer info about their accounts to EU partners. It makes sure there is transparency between countries even before the entire system is aligned.
The law will only come into effect after an official amendment is made to the existing federal decree. Officials stated that this change will play a role in promoting the country’s global efforts for fairness and transparency in taxes.
Conclusion
The new crypto bill in Switzerland signals that banking secrecy is being replaced by close adherence to global regulations. Choosing to sign this agreement reflects the country’s desire to cooperate globally, but the approval of the US was lacking.
