Switzerland Update: Crypto AEOI to Take Effect on January 1, 2026

Switzerland and Swiss financial institutions exchange information on financial accounts with over 100 countries, including all major financial centres (Automatic Exchange of Information for short “AEOI”). [1] However, so far only information on traditional assets, such as balances and securities at banks, has been exchanged. Information on digital assets, such as cryptocurrencies or other digitally tradable crypto assets such as NFT artworks[2], is not currently exchanged. Crypto exchange and crypto traders, such as Coinbase or Binance, are also not subject to the AEOI so far. In order to increase tax transparency and combat money laundering, the Federal Council has decided to implement the OECD’s Crypto-Asset Reporting Framework (“CARF”)[3]. [4] The consultation on this new set of rules was concluded on 15 November 2024. The CARF is to come into force on 1 January 2026 and the first exchange of information will take place in 2027.

What is it about?

CARF will be implemented not only by Switzerland, but probably also by all major financial centres and states that already exchange information on financial accounts. The European Union (EU) implements CARF within the framework of the DAC8 Directive. [5] The USA has also committed itself to the implementation of the CARF and has published a separate draft law on the subject, which differs from CARF in certain respects. [6] This will collect information on crypto assets from January 1, 2026, and share it between participating states in 2027, with the bill expected to take effect in the U.S. from January 1, 2027. Swiss taxpayers who hold relevant crypto assets and use services from a reporting provider of crypto services must be prepared for the fact that in 2027, the Swiss tax authorities will receive data on the crypto assets they hold and the income generated from them since January 1, 2026.

Which crypto assets are subject to the reporting obligation?

The term crypto asset is defined very broadly in the CARF. Crypto-asset means a digital representation of a value that relies on cryptographically secured distributed ledger technology, e.g. blockchain, or similar technology to validate and secure transactions. [7] However, only transactions of relevant crypto assets are subject to reporting under the CARF. However, this term is also very broad and includes all crypto assets that can be used for payment or investment purposes – unless it is a central bank digital currency or a specified e-money product – for which information is already exchanged within the framework of the AEOI.

If you are unsure whether a crypto asset you hold is a relevant crypto asset, for example in the case of an NFT artwork or NFT collectible[8], a case-by-case assessment must be made. The OECD commentary contains some positive and negative examples of this demarcation, but they do not cover all cases in practice. [9]

Who has to register for the first time?

Natural persons or legal entities that qualify as a so-called “reporting provider of crypto services”, i.e. that they commercially offer a service to carry out exchange transactions for or on behalf of customers and, among other things, act as counterparties or intermediaries or provide a trading platform (so-called “relevant transactions”) must report.

Services thus include the exchange of relevant crypto assets into fiat currencies[10] and vice versa, as well as the exchange of relevant crypto assets into other relevant crypto assets. But also the transfer of relevant crypto assets to a crypto address where the reporting provider of crypto services cannot determine at the time of the transaction that it is an exchange transaction.

In defining the term “commercial”, the Federal Council bases its definition on the criteria in the Anti-Money Laundering Act. [11] Financial intermediaries in particular are considered commercial under Art. 2 para. 2 AMLA. The thresholds set out in the respective special laws therefore apply. A person who carries out the activity of offering a service to carry out barter transactions for or on behalf of customers on a professional basis in accordance with Articles 7 to 10 of the Anti-Money Laundering Ordinance (AMLO) is also considered to be acting commercially. Even if a provider of crypto services is not subject to the AMLA, we recommend checking whether it meets these thresholds and thus qualifies as a reportable provider. According to Article 12b (2) of the E-AEOI, the Federal Council is to be instructed to determine the criteria according to which the offering of a service for the execution of barter transactions for or on behalf of customers is considered commercial.

A crypto-asset service provider carries out its activity on a professional basis if it deals with these crypto-related services:[12]

• thus generates gross proceeds of more than CHF 50,000 per calendar year;
• enters into business relationships with more than 20 Contracting Parties per calendar year that are not limited to a single activity, or maintains at least 20 such relationships per calendar year;
• has unlimited power of disposal over third-party assets that exceed CHF 5 million at any given time; or
• carries out transactions with a total volume of more than CHF 2 million per calendar year.

In contrast to the AEOI, the circle of persons and legal entities subject to the CARF reporting obligations is much broader, so that CARF will not only include financial institutions and trading platforms. However, activities of an investment fund that invests in relevant crypto-assets or provide investment advice without holding crypto-assets for or exchanging crypto-assets to customers do not constitute qualifying services. [13] Initial Coin Offerings or Initial Token Offerings (ICO or ITO) also do not fall under the qualifying activities, but the subsequent sale of these coins by the original purchasers of these coins does. [14]

What is reported?

Reporting providers of crypto services must verify the identity of their customers and report, among other things, the number of relevant transactions and the amounts of these relevant transactions that their customers have received or paid. In addition, there are special reporting obligations for relevant transactions that exceed the amount of USD 50,000 and must therefore also be examined under the offence of possible money laundering (so-called “reportable retail transactions”).

What do I have to do?

In Switzerland, the sale of crypto assets from private assets is generally tax-free. Only in exceptional cases, e.g. in the case of commercial trading, is the income from crypto assets subject to income tax and social security contributions. The situation is different for income from holding or lending crypto assets: income from staking[15], the use of DeFi protocols[16] or airdrops[17] is usually considered taxable income. In addition, crypto assets are subject to annual wealth tax, which is levied on all of a taxpayer’s assets.

With the introduction of the CARF in 2027, the Swiss tax authorities will receive information on relevant crypto assets and the income generated from them since January 1, 2026, which are held by natural or legal persons taxable in Switzerland. They should thus ensure that they declare the relevant crypto assets and the income from them in full and at the correct value in their tax return. If this has not already been the case in previous years, this problem can be resolved by means of voluntary self-disclosure without penalty until it comes into force and, depending on the practice of the cantons, until the first data exchange for tax periods that have already been definitively assessed if it is the first voluntary disclosure.

The Swiss tax authorities will also become increasingly aware of possible commercial trading in relevant crypto assets. In Switzerland, we recommend that taxpayers who hold relevant crypto assets in their private assets and frequently trade in these crypto assets check their situation and ensure that either there is no commercial trading or reduce the risk of undesirable tax consequences by means of measures.

We will be happy to support you in the correct declaration of the relevant crypto assets as part of the annual tax return, in the adjustment of a tax risk from previous years or in the planning, as well as in the implementation of risk-minimizing measures, including the confirmation of the tax consequences by obtaining tax rulings.

[1] See www.sif.admin.ch/de/automatischer-informationsaustausch-aia
[2] An NFT artwork is a digital artwork registered as a non-fungible token (NFT) on a blockchain. NFTs are unique, non-exchangeable digital certificates that prove ownership and authenticity of a digital object.
[3] Organisation for Economic Co-operation and Development.
[4] See press release of the State Secretariat for International Financial Matters (SIF) of 10 November 2023.
[5] Directive on Administrative Cooperation.
[6] Digital Asset Reporting Frameworkt (DARF).
[7] See Section IV, Multilateral Agreement of Competent Authorities on the Automatic Exchange of Information under the Crypto-Asset Reporting Framework.
[8] An NFT collectible is a digital collectible that is stored as a non-fungible token (NFT) on a blockchain. They are unique or limited digital objects that are often created for collectors’ purposes.
[9] See International Standards for Automatic Exchange of Information in Tax Matters, Crypto-Asset Reporting Framework and 2023, update to the Common Reporting Standard (OECD commentary), para. 9 et seq.: www.oecd.org/en/publications/international-standards-for-automatic-exchange-of-information-in-tax-matters_896d79d1-en.html.
[10] A FIAT currency is a government-issued currency, such as the Swiss franc.
[11] Federal Act on Combating Money Laundering and Terrorist Financing (Anti-Money Laundering Act, AMLA).
[12] Cf. Art. 7 AMLO
[13] Cf. Explanatory Report on the Opening of the Consultation Procedure of 15 May 2024, p. 48.
[14] Cf. Commentary OECD para. 25
[15] Staking is a mechanism in blockchain technology in which users lock (stake) their cryptocurrencies in order to support the network and receive rewards in return. It is a type of passive income that is comparable to interest on a savings account.
[16] DeFi – Decentralized finance are decentralized finance applications based on blockchain technology that operate without central intermediaries such as banks or brokers.
[17] Airdrops are a method of distributing cryptocurrencies or tokens to users for free, often as a marketing measure or as a reward for certain activities.