Swiss Federal Council releases dispatch on implementation of OECD Crypto-Asset Reporting Framework

On 19 February 2025, the Swiss Federal Council published a dispatch on the extension of automatic exchange of information to crypto-assets in Switzerland by adopting the Crypto-Asset Reporting Framework (CARF) developed by the OECD in cooperation with the G20.

CARF definition of crypto-assets

The CARF defines a crypto-asset as a digital representation of value that relies on a distributed ledger secured by cryptographic means or similar technology used to validate and secure transactions with the exception of the following: central bank digital currencies (CBDCs), specified electronic money products and crypto-assets which cannot be used for payment or investment purposes based on justified grounds.

This definition does not correspond to the definition of crypto-assets in the EU regulation MiCA, but is deliberately broader and also includes financial instruments registered and transferable on a blockchain in addition to other types of digital assets, such as stablecoins or cryptocurrencies. A Non-fungible token (NFT) may also fall under this definition.

Scope of application

In-scope providers:

In Switzerland, the service providers of crypto-assets are defined by the draft Ordinance on automatic international exchange of information in tax matters (AIEO) as follows:

• Financial intermediaries within the meaning of article 2 para 2 of the Anti-Money Laundering Act (AMLA), such as banks, fintech licensed firm or portfolio managers, if they provide a service for in-scope transactions (see below); and
• Crypto service providers operating on a professional basis as defined in the Anti-Money Laundering Ordinance (AMLO). This notion will include intermediaries that provide, on a professional basis, a service in the form of in-scope transactions (see below), particularly by acting as a counterparty or intermediary, or by operating an exchange platform. This category of providers generally corresponds with the definition of provider under Swiss AML rules according to article 2 para. 3 AMLA.

The obligations set out in the Swiss CARF will only apply if there is a sufficient Swiss nexus. The various nexus types are defined in the AIEO and include inter alios tax residence/domicile but also the operation of a permanent establishment in Switzerland, even in the absence of formal Swiss domicile. These types are generally in line with the OECD CARF model and generally accepted tax nexus. In-scope providers must register with the Federal Tax Administration (FTA) by the end of the calendar year at the latest.

In-scope transactions:

As a reminder, the following transactions will be in-scope:

• exchanges between crypto-assets and fiat currencies;
• exchanges between one or more forms of crypto-assets; and
• transfers of crypto-assets (including reportable retail payment transactions where an intermediary processes payment on behalf of a merchant accepting crypto-assets in payment for goods or services exceeding USD 50,000).

Transactions will be reported on an aggregate basis by crypto-asset type. To improve data quality for the FTA, the reporting on exchange transactions will distinguish between crypto-asset-to-crypto-asset and crypto-asset-to-fiat currency transactions. In principle, following the implementation of EU CARF, the reporting obligations will also differentiate transfers by type (e.g. airdrops, staking income, mining income or loans).

Annual reporting

All transactions involving crypto-assets carried out during a calendar year and the identity of the beneficial owners of these crypto-assets must be reported to the FTA. To determine the value of a retail payment transaction, the Swiss reporting crypto-asset service provider must convert the amount into USD using the spot rate.

In addition, the service provider must obtain from the user of its services a self-certification allowing the tax domicile or domiciles to be determined, the plausibility of which must be verified by the service provider.

Finally, and not surprisingly, if a person subject to declaration is a resident for tax purposes in more than one jurisdiction, that person will be considered, for all the jurisdictions subject to declaration, as a person of a jurisdiction subject to declaration.

Outlook

The revised final version of the AIEO should be available in November 2025 with the new rules coming into force on 1 January 2026 and the first automatic exchange of information scheduled for 2027. This does not leave much time for in-scope Swiss providers to prepare for this paradigm shift. They will need to adapt their processes and tools to these new requirements quickly.

Even if Swiss reporting crypto-asset service providers use other service providers to fulfil reporting and due diligence obligations, they must still fulfil these obligations. Swiss providers are advised to start preparing as soon as possible.

For more information on CARF in Switzerland, contact your CMS client partner or local CMS expert.