Crypto: Towards drastic regulation in Switzerland - CARF membership in sight!

What transparency for virtual currencies? Switzerland is preparing to answer this question by adopting international standards for crypto tax reporting. As the country considers joining the Crypto-Asset Reporting Framework (CARF), a public consultation is launched by the Swiss Federal Council to gather citizens' opinions on this decision. One more step in the fight against tax evasion on a global scale.

Switzerland commits to strengthening tax transparency for cryptos

Switzerland, one of the countries where bitcoin (BTC) is king, is preparing to adopt global standards for cryptocurrency tax reporting. With this in mind, the country plans to join the Crypto-Asset Reporting Framework (CARF) in order to increase transparency in the financial field. The Swiss Federal Council, the highest authority in the country, is launching a public consultation to gather citizens' opinions on this issue, reports Cointelegraph.

The CARF aims to establish common rules for tax reporting of crypto-assets, thus ensuring fair treatment between these new forms of money and traditional assets. This approach is part of a desire to fight tax evasion on an international scale.

Switzerland is also expanding its commitment to tax transparency considering joining the Automatic Exchange of Information (AEOI), a cooperative initiative between international tax administrations. This project, initiated by the Organization for Economic Cooperation and Development (OECD) and the Group of 20 (G20), will probably be implemented from January 1, 2026.

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Strengthened tax monitoring

Switzerland, already signatory to the OECD Common Reporting Standard (CRS) since 2014, is reviewing its regulations to include the Crypto-Asset Reporting Framework (CARF) regarding crypto-assets. The Swiss Federal Council stressed that this initiative aims to improve the country's progressive regulation of the crypto market, saying it would strengthen the credibility and reputation of the Swiss financial center.

The move comes after Canada's annual budget suggested the country would also adopt CARF by 2026. This framework would require new reporting requirements for crypto service providerssuch as cryptocurrency exchanges and crypto-asset ATM operators.

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As these regulations come into force, individuals and businesses in Canada, a country fan of strict crypto regulations, will have to report to the Canada Revenue Agency all transactions involving cryptos, whether in fiat or between crypto-assets themselves.

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