Switzerland shares crypto data with 74 countries – USA & China excluded!

Switzerland shares crypto data with 74 countries – USA & China excluded!

Switzerland's Federal Council has taken a decisive step towards tax transparency by proposing to Parliament a list of 74 states for the exchange of information on crypto assets. This decision aims to prevent tax evasion and increase transparency in the tax area. The planned information exchange is scheduled to come into force in 2026, while the first data exchange is planned for 2027. The Automatic Exchange of Information (AEOI) is an OECD standard designed to ensure that all taxpayers properly declare their income and assets. Over 100 countries have already committed to this standard.

The AEOI was extended to crypto assets in 2022 to ensure equal treatment with the traditional financial sector. The OECD Council adopted the framework for the exchange of crypto data in June 2023. Switzerland now has until January 1, 2026 to implement this plan.

List of affected states

The 74 countries with which Switzerland wants to exchange information about crypto assets include, among others:

• Argentinien
• Aserbaidschan
• Australien
• Bahamas
• Belgien
• Deutschland
• Indien
• Italien
• Japan
• Kaimaninseln
• Kana­da
• Luxemburg
• Singapur
• Vereinigtes Königreich
• Vietnam

However, important countries such as the USA, China and Saudi Arabia are missing from this list because they have not yet committed to the OECD guidelines. Switzerland is currently conducting bilateral negotiations with these states.

New due diligence requirements for crypto asset service providers

In parallel to these developments, Germany is planning to introduce the Crypto-Asset Reporting Framework (CARF), which includes new due diligence and reporting obligations for crypto asset service providers. This was triggered by the update of the EU Mutual Assistance Directive (DAC 8) in Directive (EU) 2023/2226 of October 17, 2023. The aim of these initiatives is to promote transparency in the tax area and to secure tax revenue.

Financial institutions and crypto asset service providers must therefore annually report information to national tax authorities that concerns foreign tax residents who have financial accounts or transactions in cryptocurrencies. An automatic exchange of this information between the tax authorities of the respective countries of residence should also be implemented. Germany has therefore joined the joint, cross-state declaration and is also planning to begin the intergovernmental exchange of information in accordance with OECD regulations in 2027.

The Swiss parliament is currently discussing the relevant templates to enable the exchange of information in accordance with the new standards. These measures are part of a broader approach to combat tax evasion and promote tax transparency at international level.

Further details and developments can be found at 20 minutes and that Federal Ministry of Finance.