Regulation
Crypto: Towards strict regulation in Switzerland
Fri May 17, 2024 ▪ 3 min read ▪ by Mikaia A.
What transparency for virtual currencies? Switzerland is set to answer this question by adopting international standards for tax reporting on cryptocurrencies. As the country considers joining the Crypto-Asset Reporting Framework (CARF), a public consultation has been launched by the Swiss Federal Council to gather citizens’ opinions on this decision. A new step in the global fight against tax evasion.
Switzerland commits to strengthening tax transparency for cryptos
Switzerland, one of the country where bitcoin (BTC) is kingis about to adopt global standards for cryptocurrency tax reporting. With this in mind, the country plans to join the Crypto-Asset Reporting Framework (CARF) to increase transparency in the financial sector. The Swiss Federal Council, the highest authority in the country, is launching a public consultation collect citizens’ opinions on this issue, reports Cointelegraph.
The CARF aims to establish common rules for tax reporting of crypto-assets, thus ensuring fair treatment between these new forms of money and traditional assets. This approach is part of a global effort to combat tax evasion.
Switzerland is also expanding its commitment to tax transparency considering joining the Automatic Exchange of Information (AEOI), a cooperation initiative between international tax administrations. This project, initiated by the Organization for Economic Co-operation and Development (OECD) and the Group of 20 (G20), should be implemented from January 1, 2026.
Strengthened tax monitoring
Switzerland, already a signatory to the OECD Common Reporting Standard (CRS) since 2014, is reviewing its regulations to include the Crypto-Asset Reporting Framework (CARF) regarding crypto-assets. The Swiss Federal Council emphasized that this initiative aims to improve the progressive regulation of the crypto market in the country, saying it would strengthen the credibility and reputation of the Swiss financial center.
The move follows the Canadian federal budget suggesting the country would also adopt CARF by 2026. This framework would impose new reporting requirements for crypto service providerssuch as cryptocurrency exchanges and crypto-asset ATM operators.
As soon as this regulation comes into force, individuals and businesses in Canada, a country known for its strict crypto regulationswill have to report all transactions involving cryptocurrencies to the Canada Revenue Agency, whether in fiat currency or between the cryptoassets themselves.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day when the impacts are felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.