Crypto: Towards strict regulation in Switzerland - Membership in CARF on the horizon!
What transparency for virtual currencies? Switzerland is about 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 has been launched by the Swiss Federal Council to gather citizens’ opinions on this decision. Another step in the global fight against tax evasion.
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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. In this perspective, the country plans to join the Crypto-Asset Reporting Framework (CARF) to increase transparency in the financial sector. The Swiss Federal Council, the highest authority in the country, is thus 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 currency and traditional assets. This approach is part of a global effort to combat tax evasion.
Switzerland is also extending its commitment to tax transparency by considering joining the Automatic Exchange of Information (AEOI), an initiative for cooperation among international tax administrations. This project, initiated by the Organization for Economic Co-operation and Development (OECD) and the Group of 20 (G20), is likely to be implemented from January 1, 2026.
Enhanced tax monitoring
Switzerland, already a signatory of the OECD’s 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 emphasized that this initiative aims to improve the country’s progressive regulation of the crypto market, stating it would enhance the credibility and reputation of the Swiss financial center.
This decision follows the Canadian federal budget suggesting that the country would also adopt the CARF by 2026. This framework would impose new reporting requirements on crypto service providers, such as cryptocurrency exchanges and crypto-asset ATM operators.
Upon the entry into force of these regulations, individuals and businesses in Canada, a country known for its strict crypto regulations, will need to report all transactions involving cryptos to the Canada Revenue Agency, whether in fiat or between crypto-assets themselves.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.