The Swiss Federal Council declared that it initiated a consultation regarding the automatic exchange of information by the Crypto-Asset Reporting Framework (CARF) on 15 May, 2024.

Set to apply from 1 January, 2026, the extension concerns the new AEOI concerning cryptoassets and the amendment of the standard for the automatic exchange of financial account information.

The consultation will run until 6 September, 2024.

In October 2022, the OECD published the update to the common reporting and due diligence standard for financial account information (CRS) and the new Crypto-Asset Reporting Framework (CARF).

The associated recommendation of the OECD Ministerial Council states that both sets of rules are binding AEOI standards that must be implemented globally. While the amendments to the CRS clarify interpretation issues and take practical experience into account, the CARF regulates the handling of cryptoassets and their providers.

Cryptoassets are digital assets based on a distributed ledger or similar technology.

The OECD adopted the CRS in 2014 and this is the first time it has been updated.

Switzerland has undertaken to implement this standard and also to adopt any further developments.

Subject to parliamentary approval, Switzerland intends to implement the CARF as well. This is intended to close gaps in the tax transparency mechanism and ensure equal treatment with respect to traditional assets and financial institutions.

Implementation of the CARF will expand Switzerland’s progressive cryptomarket regulation and help to maintain the credibility and reputation of the Swiss financial centre.

The consultation draft also aims to make the negligent violation of due diligence, reporting and disclosure obligations an offence and to simplify the inclusion of new AEOI partner states with a delegation of powers from Parliament to the Federal Council.