Swiss officials devise strategy for implementing worldwide cryptocurrency reporting system

Switzerland’s highest authority, the Federal Council, has announced plans to adopt global standards for crypto tax reporting in order to ensure fairness in the treatment of digital assets compared to traditional assets. The council aims to implement the Crypto-Asset Reporting Framework (CARF) to enhance tax transparency. To gather public opinion on joining the Automatic Exchange of Information (AEOI), an international effort to combat tax evasion, Switzerland has launched a consultation process that will conclude on September 6. The CARF regulations are expected to be fully adopted by nearly 50 countries by 2027 to combat money laundering. The Swiss government aims to address gaps in tax transparency and ensure equal treatment between digital and traditional assets and financial institutions. However, the implementation of CARF requires parliamentary approval and cannot solely rely on the consultation responses. As part of the global trend, Canada also plans to implement CARF by 2026, according to its 2024 budget. This framework would introduce new reporting requirements for crypto service providers, including exchanges, brokers, dealers, and ATMs. Canadian individuals and businesses would be obligated to report transactions involving crypto assets and fiat currencies, as well as transactions between different crypto assets, to the Canada Revenue Agency.