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Cryptocurrencies: towards strict regulation in Switzerland
Fri 17 May 2024 ▪ 3 minute read ▪ by Mikaia A.
What transparency for virtual currencies? Switzerland is about to answer this question by adopting international standards for cryptocurrency tax reporting. As the country considers joining the Crypto-Asset Reporting Framework (CARF), the Swiss Federal Council has launched a public consultation to gather citizens’ opinions on this decision. Another step in the global fight against tax evasion.
Switzerland is committed to strengthening tax transparency for cryptocurrencies
Switzerland, one of countries where bitcoin (BTC) is kingis preparing to adopt global standards for cryptocurrency tax reporting. In this perspective, the country plans to join the Crypto-Asset Reporting Framework (CARF) to increase transparency in the financial sector. The Swiss Federal Council, the country’s highest authority, therefore launches a public consultation to gather citizens’ opinions on this issue, he reports Cointelegraph.
CARF aims to establish common rules for tax reporting of crypto-assets, thus ensuring fair treatment between these new forms of currency and traditional assets. This approach is part of a global effort to combat tax evasion.
Switzerland is also expanding its own commitment to fiscal transparency considering joining the Automatic Exchange of Information (AEOI), an initiative for cooperation between international tax administrations. This project, initiated by the Organization for Economic Co-operation and Development (OECD) and the Group of 20 (G20), is likely to be implemented starting January 1, 2026.
Enhanced 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) relating to crypto-assets. The Swiss Federal Council underlined that this initiative aims to improve the progressive regulation of the cryptocurrency market in the country, saying that it would improve the credibility and reputation of the Swiss financial center.
This decision follows the Canadian federal budget suggesting that the country would also adopt CARF by 2026. This framework would impose new reporting requirements for cryptographic service providerssuch as cryptocurrency exchanges and cryptocurrency ATM operators.
Since these regulations came into force, individuals and businesses in Canada, a country known for its strict cryptographic regulationsthey will have to report all transactions involving cryptocurrencies to the Canada Revenue Agency, both in fiat and between crypto-assets themselves.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.