The Swiss government has announced a delay in its plans to implement a major crypto law, reflecting the ongoing struggle faced by governments worldwide in establishing uniform crypto tax regulations. This decision arrives as the cryptocurrency sector continues to gain momentum amid increasing adoption.
Swiss Government Delays Implementation Of Popular Crypto Law
In a press release, the Swiss Federal Council indicated that the new Crypto-Asset Reporting Framework (CARF) will be officially established in January 2026 but will not be implemented until 2027 at the earliest. This postponement follows the National Council’s Economic Affairs and Taxation Committee (ETAC) suspending discussions about the partner states for data exchange under the new crypto law.
Additionally, the Federal Council has confirmed that the provisions concerning crypto assets outlined in the Federal Act on the Automatic Exchange of Information in Tax Matters (AEOIA) and the accompanying AEOI Ordinance will not take effect next year. Concurrently, amendments to the Automatic Exchange of Information in Tax Matters (AEOI Ordinance) have been approved by the government.
The details of the crypto law entail significant amendments to the Federal Act on the AEOIA. The updated AEOI Ordinance now requires crypto service providers to adhere to reporting obligations, conduct thorough due diligence, and register appropriately. These provisions clarify the connection of such entities to Switzerland.
Furthermore, under the anticipated regulations, crypto service providers, including exchanges, will be required to apply directly to relevant associations and foundations, putting their accounts under the purview of the law. However, they may be excluded from the AEOI if they meet specific criteria outlined in the revised ordinance. The law also includes transitional provisions aimed at facilitating the compliance of affected parties with both the amended CRS and CARF.
The introduction of the Crypto-Asset Reporting Framework (CARF) is poised to enable the automatic exchange of taxable information regarding cryptocurrency transactions across borders. In tandem, other nations like the U.S. and the U.K. are working diligently to incorporate this global standard for crypto tax reporting into their respective legal systems.
U.K. Also Moves To Implement CARF
In a separate announcement, the U.K. government shared its plans to adopt the CARF framework for international data exchanges beginning in 2027. In this context, U.K. reporting crypto asset service providers (RCASPs) will be tasked with gathering pertinent tax information and executing due diligence on their users annually, as detailed in a government release.
These U.K. RCASPs will specifically collect information relating to U.K. resident customers. Consequently, the country’s tax authority, HMRC, will have access to CARF data concerning all taxpayers engaging with a U.K.-based RCASP. Moreover, it is notable that the U.S. also intends to implement a similar crypto law, as reports indicate that the Treasury Department has submitted CARF regulations for review by the White House.
