Switzerland’s Federal Council has recently approved a bill to facilitate the automatic exchange of information related to crypto assets with 74 partner countries. This groundbreaking legislation is set to take effect in January 2026, with the first exchange of information scheduled for 2027. However, notable exclusions from this agreement include the United States, Saudi Arabia, and China.

Details of the Crypto Information Exchange Bill

The newly adopted bill aims to enhance tax transparency within the global cryptocurrency market. Under this initiative, Switzerland will share data on crypto assets with partner countries deemed “relevant to the crypto market.” Notably, the list includes all EU member states, the United Kingdom, and most G20 nations. However, the U.S., Saudi Arabia, and China are excluded from this agreement.

According to the Federal Council, the exchange of crypto asset data will only occur if partner countries agree to reciprocate by sharing their own crypto asset data with Switzerland. Additionally, participating countries must comply with the Crypto-Asset Reporting Framework developed by the Organization for Economic Co-operation and Development (OECD).

Key Conditions for Data Sharing

The council has outlined specific criteria for data-sharing agreements:

  • Partner states must consent to share their crypto asset data with Switzerland.
  • All participating countries must adhere to the OECD’s Crypto-Asset Reporting Framework.
  • Switzerland will periodically review whether partner countries continue to meet the required standards before data exchange begins.

“Prior to the actual exchange of data on crypto assets, the Federal Council will also review whether the partner states with which the AEOI has been activated continue to fulfill the standard’s requirements,” stated the Swiss Federal Government.

What Is the Crypto-Asset Reporting Framework?

The OECD’s Crypto-Asset Reporting Framework plays a crucial role in combating cross-border tax evasion. It enhances transparency in the cryptocurrency sector by requiring Crypto-Asset Service Providers to collect and report specific user data. This includes:

  • Tax residency and taxpayer identification numbers of users.
  • Annual reports on transactions such as exchanges between crypto-assets and fiat currencies.
  • Exchanges between different crypto-assets and transfers of crypto-assets.

By mandating these reporting standards, the framework aims to reduce tax evasion in the rapidly evolving crypto market while fostering greater accountability among service providers like exchanges and wallet operators.

Implications for the Global Crypto Market

The implementation of this bill marks a significant step toward global cooperation in regulating cryptocurrency activities. By aligning with the OECD framework, Switzerland is setting a precedent for other nations to follow. This move could encourage more countries to adopt similar measures, ultimately creating a more transparent and compliant crypto ecosystem.

However, the exclusion of major players like the U.S., Saudi Arabia, and China raises questions about the global reach and effectiveness of this initiative. It remains to be seen how these exclusions will impact the overall success of the program.

As the crypto market continues to evolve, initiatives such as Switzerland’s automatic exchange of information could play a pivotal role in shaping the future of cryptocurrency regulation and taxation.

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