Swiss leaders plan to enforce global crypto reporting framework

As a researcher with a background in finance and tax policy, I strongly believe that Switzerland’s decision to adopt the Crypto-Asset Reporting Framework (CARF) is a significant step towards improving tax transparency and ensuring equal treatment of crypto assets compared to traditional financial instruments.


The top governing body in Switzerland announced a public hearing on its proposal to align crypto tax reporting with international norms, aiming for “fairness and uniformity” with conventional assets.

The Swiss government, led by its seven-member executive body called the Federal Council, plans to enact the Crypto-Asset Reporting Framework (CARF) in order to enhance tax reporting and transparency within the realm of cryptographic assets.

On May 15th, I analyzed the news that the Federal Council initiated a public consultation regarding Switzerland’s potential participation in the Automatic Exchange of Information (AEOI), an international tax cooperation aiming to combat tax evasion. The proposed entry into force for Switzerland is currently set for January 1, 2026.

The Organisation for Economic Co-operation and Development (OECD) introduced AEOI and other related programs for the G20 countries, which subsequently expanded to involve more nations.

Previously, Switzerland implemented the Organisation for Economic Co-operation and Development’s (OECD) Common Reporting Standard (CRS) in 2014. However, this regulation did not cover CARF, which is responsible for overseeing crypto asset management and their related service providers. To address this gap, the Federal Council announced its intentions to incorporate CARF into the existing framework.

“The introduction of the CARF (Financial Market Supervisory Authority for Fintech) in Switzerland will broaden the country’s advanced crypto regulations, ensuring the upkeep of its financial hub’s integrity and esteem.”

As an analyst, I would emphasize that while the Consultation Paper provides valuable insights, the actual implementation of CARF (Consumer Access to Financial Records) necessitates parliamentary approval. Therefore, it’s crucial not to rely solely on the responses gathered from the consultation process.

Approximately 50 countries are projected to have implemented the CARF regulations in their entirety by the year 2027, working together to combat money laundering effectively.

The Swiss federal authority aims to address loopholes in the tax transparency framework and guarantee uniformity in taxation for conventional assets and financial institutions.

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

In April 2024, Canada’s annual budget proposed that the Comprehensive Agriculture and Food Policy (CARF) would be introduced for taxation purposes in Canada by 2026.

The CARF (Compliance, Accounting, and Reporting Forum) will introduce new reporting obligations for entities providing services related to crypto assets, including cryptocurrency exchanges, brokerages, dealers, and ATM operators.

As a researcher, I would explain it this way: Once regulations take effect, Canadians, including individuals and businesses, are obligated to disclose certain crypto asset transactions to the Canada Revenue Agency (CRA). These transactions involve both fiat currency and crypto assets exchanging for other crypto assets.

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2024-05-16 10:37