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Switzerland expands tax transparency: automatic exchange of information on crypto assets

Data protection law Data compliance

In the following article, we inform you about the introduction of the international automatic exchange of information (AEOI) on crypto assets with the relevant partner states from 2026.

Background and content

In autumn 2022, the Organisation for Economic Co-operation and Development (OECD) presented an automatic exchange of information (AEOI) for digital assets, specifically for crypto assets (MRK, the Crypto Assets Reporting Framework CARF). At the end of 2023, Switzerland also came out in favour of this extension of the AEOI to digital assets.

The aim of this is to increase tax transparency and enable the equal treatment of financial and crypto products. With Switzerland’s planned approval, the commitments to contribute to maintaining international tax transparency will be honoured. This will enhance Switzerland’s credibility and reputation as a leading financial centre.

The CARF is to come into force at the beginning of 2026 so that the first exchange of data can take place in 2027.

However, Switzerland must first amend the existing federal laws and ordinances on AEOI. As a first step, the Federal Council launched a consultation on the expansion of the international automatic exchange of information in tax matters in May 2024. In a second step, the consultation on determining the partner states for the automatic exchange of information on crypto assets was opened in August 2024. The cantons, political parties and interested parties had until 15 November 2024 to submit their comments.

But what exactly is the AEOI and how should it work with crypto assets?

The AEOI is a regular and automatic exchange of information. Information on financial accounts or, in the future case, crypto assets, will be collected by the relevant providers and transmitted to the Federal Tax Administration (FTA). This reporting obligation applies to providers of crypto service providers that offer exchange transactions between cryptocurrencies. Users of a crypto service, which can be both natural persons and legal entities, must be reported. This also includes the beneficial owner of a cryptocurrency so that the AEOI cannot be circumvented. The reports must contain information on the identity of the person and information on the transactions carried out.

In order to report this information, the users of cryptocurrencies must first be identified and the necessary information obtained. The MRK therefore contains due diligence obligations that must be complied with by providers of crypto services. A breach of these obligations can be penalised with a fine.

Selection of countries

As with the AEOI for financial accounts, the legal basis for the exchange of information for crypto assets also does not specify with which partner states information should be shared. Each participating state decides for itself with which other states it wishes to introduce the exchange of information.

The relevant states include all those states that have made a binding commitment to implement the MRK, are relevant to the crypto sector or adopt a “crypto-friendly” stance. The Federal Council is authorised to include states on a corresponding list. It should also be able to set the date from which the exchange of information should take place.

Data protection aspects

The Global Forum on Transparency and Exchange of Information for Tax Purposes (hereinafter: Global Forum) has reviewed the confidentiality and data security of 114 partner states prior to the exchange of data. Countries that received either no recommendations or only non-binding recommendations with potential for improvement fulfil the requirements for AEOI via crypto assets. However, partner states that have serious deficiencies and have received binding recommendations may only participate in the AEOI if they have made corresponding improvements, which were subsequently reviewed and confirmed by the Global Forum.

Accordingly, the AEOI agreement on crypto assets ensures that only those partner states that can guarantee the confidentiality and security of the data receive information. As data protection requirements vary from country to country, the AEOI agreement on crypto assets obliges the partner states to comply with their national data protection laws. In the case of bilateral activation of the AEOI, the partner states are obliged to fulfil the data protection requirements of the other state.

Many states that have been proposed for the AEOI on crypto assets are not considered by the Federal Council to have adequate data protection. However, a transfer of data to such a state is still conceivable if adequate data protection is ensured by one of the instruments mentioned in Art. 16 para. 2 FADP. The article lists a number of cases in which personal data may be disclosed abroad, for example if an international treaty guarantees adequate data protection (lit. a). This mechanism is included in Art. 6 of the AEOI agreement on crypto assets.

In practice, this is implemented as follows: Under Section 7 para. 1 lit. d of the AEOI Agreement on Crypto Assets, Switzerland will submit a notification on data protection to the Secretariat of the Coordination Body. This notification sets out the principles of data protection law, including the right to judicial review and the data subject’s right to information. If a state includes Switzerland in its list of AEOI partners, it is obliged to comply with the Swiss data protection provisions set out in the notification in the bilateral relationship.

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