Switzerland’s Federal Council has recently approved a bill that paves the way for the automatic exchange of crypto asset information with 74 partner countries, excluding the United States, Saudi Arabia, and China. This move signifies Switzerland’s commitment to enhancing tax transparency in the rapidly evolving crypto market.
The bill, set to take effect in January 2026, will see Switzerland automatically sharing data related to its crypto assets with selected countries deemed relevant to the crypto market. The first exchange of information is scheduled for 2027, with all EU member states, the United Kingdom, and most G20 countries included in the data-sharing agreement.
However, countries like the U.S., Saudi Arabia, and China will not be part of the 74 partner countries receiving information on Switzerland’s crypto assets. The Swiss Federal Government emphasized the exclusion of these countries in a recent announcement.
Before any exchange of data takes place, partner countries must provide consent for sharing their own crypto asset information with Switzerland. Additionally, they are required to adhere to the Crypto-Asset Reporting Framework developed by the OECD. This framework aims to combat cross-border tax evasion by ensuring tax transparency among countries.
Crypto-Asset Service Providers, including exchanges and wallet providers, are mandated to collect and report information on users’ tax residencies and taxpayer identification numbers. They must also report specific transactions annually, such as exchanges between crypto-assets and fiat currencies, exchanges between different crypto-assets, and transfers of crypto-assets.
The Swiss Federal Government council stated that they will review partner countries’ compliance with the standard’s requirements before initiating the actual exchange of data on crypto assets. This cautious approach reflects Switzerland’s commitment to upholding tax transparency standards in the global crypto market.
Overall, Switzerland’s decision to implement automatic information exchange with partner countries demonstrates its proactive stance in regulating the crypto industry and promoting tax transparency on a global scale.