The Swiss government has announced a delay in its plans to implement a major crypto law. This comes as governments worldwide face difficulty in achieving uniform crypto tax regulations, even as the crypto industry heats up with wider adoption.
Swiss Government Delays Implementation Of Popular Crypto Law
In a press release, the Swiss Federal Council announced that the new Crypto-Asset Reporting Framework (CARF) will be enshrined into law from January 2026, but will not be implemented until 2027 at the earliest. The National Council’s Economic Affairs and Taxation Committee (ETAC) earlier this month suspended deliberations on the partner states with which Switzerland intends to exchange data under the crypto law, which prompted this decision.
The Federal Council also determined that the provisions on crypto assets contained in the Federal Act on the Automatic Exchange of Information in Tax Matters (AEOIA) and AEOI Ordinance shall not apply next year. Meanwhile, the government approved amendments to the Automatic Exchange of Information in Tax Matters (AEOI Ordinance).
The release noted that the crypto law contains implementing provisions on amending the Federal Act on the AEOIA. As part of the amendments, the AEOI Ordinance now includes the crypto service providers’ duty to report, duty to conduct due diligence, and duty to register. It also specifies their nexus to Switzerland.
Furthermore, under the crypto law, crypto service providers such as exchanges will now directly apply to associations and foundations, and their accounts will be subject to the law. However, they are excluded from the AEOI if they meet certain conditions under the revised ordinance. Lastly, the law also contains transitional provisions that make it easier for the affected parties to implement the amended CRS and the CARF.
The Crypto-Asset Reporting Framework (CARF) will enable the automatic exchange of tax information on crypto transactions between countries. Other countries, including the U.S. and the U.K., are working to implement this global standard of crypto tax reporting into their legal frameworks.
U.K. Also Moves To Implement CARF
In a release, the U.K. government announced that it is implementing the CARF for the first international data exchanges in 2027. The government noted that the CARF requires U.K. reporting crypto asset service providers (RCASPs) to collect relevant tax information and undertake due diligence in relation to their users on an annual basis.
These U.K. RCASPs will also be required to collect information concerning U.K. resident customers. This means that the country’s tax authority, HMRC, will have CARF data on all taxpayers using a U.K.-based RCASP. Meanwhile, it is worth noting that the U.S. is also planning to implement the crypto law. Bitcoinist recently reported that the Treasury Department has dispatched the CARF regulations to the White House for review.
