What Happened?
The Swiss Federal Council has approved a proposal to start sharing data on crypto-assets automatically with 74 partner countries, beginning in 2027. This decision is based on the Crypto-Asset Reporting Framework (CARF) developed by the OECD to enhance tax compliance through international cooperation. The initiative includes EU states, the UK, and most G20 countries but notably excludes the U.S. and Saudi Arabia.
Who Does This Affect?
This affects crypto-asset holders who reside or operate in the jurisdictions included in Switzerland’s data-sharing agreement. It impacts governments and regulatory bodies seeking to track offshore digital asset holdings for better tax enforcement. The exclusion of major economies like the U.S. means that citizens of these countries may not initially be subject to this level of transparency in crypto asset reporting.
Why Does This Matter?
This move positions Switzerland at the forefront of global efforts to regulate and monitor crypto-assets, potentially influencing international standards and market practices. By setting up such an exchange system, Switzerland could lead to increased market transparency, impacting how crypto-assets are handled globally. The potential expansion of this list of countries could mean wider implications for international crypto markets and compliance costs for crypto businesses.