Switzerland Adopts Bill For Automatic Sharing Of Crypto Information With 74 Countries

• Legislators in Switzerland have adopted a bill that enables the automatic exchange of crypto information with 74 countries.
• The Federal Council plans to enforce the law next year and anticipates that data exchange with partners will commence in 2027.

The Federal Government of Switzerland announced on Friday that it had adopted a bill enabling the automatic exchange of information (AEOI) on cryptocurrencies with 74 countries. The Swiss parliament plans to enforce the measure next year.

AEOI of Crypto Assets with Switzerland

The latest development was a follow-up on the legal bases agreed upon by the members of the Federal Council for the AEOI on February 19 this year. It is still subject to further deliberations, but legislators are targeting its implementation as early as January 1, 2026. However, they expect the actual exchange of crypto data to begin in 2027.

The bill adopted on Friday identified the countries that will automatically exchange information with Swiss regulators. The 74 nations identified in the bill include the 27 member states of the European Union (EU), the United Kingdom (UK), and most G20 countries. Its coverage excluded the United States (US), China, and Saudi Arabia.

ADVERTISEMENTThe council agreed on the condition that Switzerland would only enable the AEOI on crypto with partner states if the latter would reciprocate the move. In addition, the partners should align their standards with the provisions of the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD), an association comprising Switzerland and 37 other nations.

The Swiss government stated that it will conduct a periodic review of its partners’ adherence to the AEOI’s requirements.

More Erosion of Financial Anonymity

Switzerland’s banking sector used to stand out on the global stage with its long-standing reputation for stability, security, and privacy. However, the OECD’s introduction of the Common Reporting Standard (CRS) somewhat diminished the illusion of complete secrecy in Swiss banking during the past decade. Then, the arrival of the CARF effectively expanded its scope.

ADVERTISEMENTThe CARF raised transparency in crypto transactions and portfolios for taxation purposes, removing the shielding of these digital assets from government monitoring at the expense of the anonymity of crypto users. Critics argue that the expansion of the measure within the new crypto AEOI guidelines will only trigger more capital flight from individuals and institutions relying on the previously favorable stance of the Swiss jurisdiction toward financial privacy.

Furthermore, the exclusion of nations like the US, Saudi Arabia, and China presents legal and operational loopholes that persons and companies could easily exploit to evade scrutiny from Swiss regulators.

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