Switzerland, long regarded as a bastion of financial privacy and innovation, is aligning with a new global standard for tax transparency in the digital asset space. Starting January 1, 2026, the country plans to implement the OECD’s Crypto-Asset Reporting Framework (CARF). This move will place crypto transactions on par with traditional financial assets under international tax cooperation agreements.
Here’s what investors, service providers, and tax professionals need to know.
What Is CARF?
The Crypto-Asset Reporting Framework (CARF) is an OECD-led initiative designed to extend the Automatic Exchange of Information (AEOI) to crypto-assets. While Switzerland has been exchanging account data under the AEOI since 2017, this only covered traditional assets like bank deposits and securities. Crypto-assets such as Bitcoin, Ethereum, NFTs, and DeFi income have so far remained outside this scope.
That is changing. CARF will introduce new reporting obligations for crypto service providers, requiring them to collect and transmit information on user identities, crypto holdings, and income to tax authorities, who will then exchange that data across borders.
Timeline for Implementation
The implementation of CARF in Switzerland follows this timeline:
- November 2024: Switzerland concluded a public consultation (Vernehmlassung) on CARF implementation.
- January 1, 2026: CARF is expected to enter into force in Switzerland.
- 2027: First data exchange between participating jurisdictions, including over 100 countries and key financial hubs.
The European Union will implement CARF via its DAC8 directive, and the United States has introduced its own version in parallel.
Who Will Be Affected?
1. Swiss Taxpayers Holding Crypto Assets
Anyone who is tax resident in Switzerland and holds “relevant crypto-assets” with a reporting service provider should prepare for transparency. The Swiss tax authorities will receive detailed information on:
- Wallet balances
- Capital gains and income from crypto
- Transaction volumes
- Staking rewards, DeFi interest, and airdrops
Under Swiss tax law:
- Profits from private crypto sales remain tax-free.
- Income from staking, DeFi, and lending is considered taxable and must be declared.
2. Crypto Service Providers
Entities that professionally offer crypto exchange, brokerage, or wallet services are subject to CARF reporting obligations if they meet one or more of the following thresholds:
- Gross revenue over CHF 50,000 per year
- More than 20 active client relationships
- Assets under custody exceeding CHF 5 million
- Total transaction volume exceeding CHF 2 million annually
Notably, CARF goes beyond the traditional definition of “financial institutions” used under AEOI, meaning a much wider range of actors in the crypto space will fall under the new regime.
What Is a Relevant Crypto-Asset?
CARF defines crypto-assets broadly as any digital representation of value that relies on cryptography and distributed ledger technology (DLT). This includes:
- Cryptocurrencies (e.g., BTC, ETH)
- Stablecoins
- Tokenized securities
- NFTs used for investment or payment purposes
Exemptions: Central bank digital currencies (CBDCs) and specified e-money products already covered under AEOI are not reportable under CARF.
For NFTs, a case-by-case evaluation is required. If the asset is used purely for art collection or gaming, it may be exempt. However, if it has a speculative investment function, reporting may apply.
What Will Be Reported?
CARF mandates the reporting of:
- The identity and residency of customers
- The total amount of crypto received, sent, or exchanged
- The fiat equivalent of crypto transactions
- Any income derived from crypto (e.g., rewards, yield, or staking)
Transactions over USD 50,000 may also be flagged under anti-money laundering rules for enhanced scrutiny.
Voluntary Disclosure: A Last Window of Opportunity
Swiss taxpayers who have not yet declared their crypto holdings may consider voluntary self-disclosure before CARF comes into effect. Under current practice, the first voluntary disclosure can be made without penalties, provided the assets are fully reported.
For individuals who may have unknowingly crossed into professional trading activity, now is the time to review your situation. The tax implications can differ significantly between private asset management and commercial crypto activity.
Final Thoughts
Switzerland’s adoption of the Crypto-Asset Reporting Framework is a landmark step in bringing crypto into the fold of international tax cooperation. While it signals the end of anonymous cross-border crypto wealth, it also provides regulatory clarity and aligns Switzerland with global standards.
At Validvent, we support investors, companies, and legal professionals in navigating the evolving intersection of crypto, tax, and compliance. If you require assistance with the tax classification of digital assets, reporting obligations, or regulatory filings, our team is here to help.
Georg Brameshuber is an Austrian tax expert, legal scholar, and entrepreneur specializing in crypto taxation, regulation, and wealth management. As the co-founder of Validvent, he leads the Validvent team, delivering crypto tax accounting, strategic advisory services, and crypto wealth management.
Previously, Georg worked in audit and financial compliance at KPMG Austria and ERBER Group, specializing in risk management, regulatory compliance, and corporate governance for multinational firms.
Beyond his corporate roles, Georg has significantly contributed to blockchain policy and regulation, holding Board positions at Blockchain for Europe (BC4EU), the Digital Asset Association Austria (DAAA) and the European Crypto Initiative (EUCI).
Georg is also active in academia and is a thought leader in the blockchain space. He is regularly speaking at conferences and has taught at institutions. Previously held a teaching and research position in law at the University of Vienna (equivalent to Assistant Professor in the U.S.).