This issue summarizes the content related to Switzerland's plan to exchange encryption information with 74 countries based on publicly available information, for reference.
According to the bill passed by the Swiss Federal Council on June 6, 2025, Switzerland plans to automatically exchange encryption asset tax information (AEOI) with 74 countries, aimed at combating tax evasion and illegal capital flows, in response to the Economic Cooperation and Development Organization (OECD) encryption asset reporting framework (CARF) standards.
1. Background of the Event
The background of Switzerland's recent passage of the encryption information exchange bill can be summarized as three main driving forces: international pressure, regulatory demands, and its own financial transformation. The core issue is to address the tax and money laundering risks posed by cryptocurrencies, while also reshaping its global financial position.
(1) The Wave of Tax Transparency Forces Reform
Global unified action against tax evasion. The Organisation for Economic Co-operation and Development (OECD) will launch the Crypto Asset Reporting Framework (CARF) in 2024, requiring member countries to automatically exchange cryptocurrency tax information to close loopholes in traditional financial regulation. Switzerland, as a traditional financial center, will face isolation and may even be listed as a "non-cooperative tax jurisdiction" if it refuses to participate, threatening its financial industry's reputation.
Continuation of historical commitments. Switzerland signed the Automatic Exchange of Financial Account Information (AEOI) agreement as early as 2014, covering 47 countries (including the EU, G20, etc.). This expansion of AEOI to encryption assets is an upgrade to the existing compliance framework, avoiding loss of international trust due to regulatory lag.
(2) The Urgency of Regulatory Gaps in Cryptocurrency
Encryption assets have become a new tool for tax evasion. With the surge in trading volume of cryptocurrencies such as Bitcoin (with a market value of 2.06 trillion USD in June 2025), anonymity makes them easy to use for cross-border tax evasion and money laundering. The Swiss government has clearly stated that this move aims to stop behaviors that "use encryption assets to conceal wealth or transfer illegal funds."
The failure of the traditional banking secrecy system. Switzerland was once famous for its banking secrecy laws, but in recent years it has faced lawsuits for assisting tax evasion (such as the 2013 accountability of UBS by the United States). In the context of the digital finance trend, relying solely on traditional regulation can no longer cover the risks of encryption assets; new rules must be established.
The shift in positioning from "tax haven" to "compliance hub." To shed the negative label of being a "hidden wealth center," Switzerland has actively embraced transparency, with cities like Lugano piloting the acceptance of cryptocurrencies for tax payments. The passage of this bill signifies its attempt to become a global information exchange center for encryption assets, attracting funds from compliant institutions.
Maintain financial competitiveness. If not joining CARF, Swiss encryption service providers may face restrictions on access to the international market. After the bill is passed, Swiss encryption companies can seamlessly connect with 74 countries, reducing compliance costs for cross-border business.
| | |
| --- | --- |
| Driving Factors | Specific Performance |
| International Compliance Pressure | The OECD's CARF framework forces participation to avoid marginalization |
| Regulatory Gaps | The risk of tax evasion and money laundering in encryption assets is rising, and regulatory loopholes need to be filled |
| Financial Positioning Transformation | Transitioning from a confidential safe haven to a transparent information hub, reshaping international trust |
| Economic Competitiveness | Reduce the cross-border compliance costs for enterprises to attract compliant capital inflow |
This bill is not only Switzerland's compromise on global tax transparency but also a key layout for it to actively seize the high ground in encryption regulation and maintain its status as a financial center. Whether it can balance privacy protection and compliance requirements in the future will determine the success or failure of the transformation.
2. Exchange of Information Content
According to the OECD CARF standards, financial institutions are required to collect and report the following encryption asset-related data:
Account Holder Identity Information: Name, Address, Tax Residence, Tax Identification Number (TIN), etc.
Encryption asset account details: including wallet address, account balance (based on the value at year-end or at the time of account closure).
Transaction Record: Involves transaction types, amounts, and timestamps for buying, selling, exchanging, and transferring encryption assets.
Financial Institution Information: Identification information of Swiss encryption asset service providers (such as exchanges, custody platforms) providing services.
Core purpose: To prevent tax evasion and money laundering through the transparency of cross-border taxation involving encryption assets.
3. Scope of Cooperation Countries
Although the complete list is not detailed in public materials, various reports suggest that the cooperating countries have the following characteristics:
Covering the core economies of Europe: including all 27 EU member states (such as Germany, France, Italy), as well as the United Kingdom.
Most G20 countries: including Japan, South Korea, Canada, Australia, Brazil, etc., but excluding the United States, Saudi Arabia, and China (due to incomplete negotiations or differences in regulatory frameworks).
Other Partners: Including traditional financial cooperation countries from Singapore and Switzerland (such as Iceland, Norway, etc.), totaling 74 countries.
Four, Implementation Timeline
Review Mechanism: Switzerland will assess whether cooperating countries meet data security and privacy standards before data exchange.
Phased implementation: Data collection effective January 2026, first exchange in 2027, reserve system upgrade time.
Dynamic Review Mechanism: Before the exchange, it is necessary to assess whether the cooperating country meets data security standards to prevent information misuse.
Exclusion of the US, China, and Saudi Arabia: Due to the existing FATCA system in the United States and the unfinished negotiations between China and Saudi Arabia, they are temporarily not included, reflecting pragmatism.
| | |
| --- | --- |
| Element | Content |
| Type of Information Exchanged | Account Identity, Balance, Transaction Records, Financial Institution Information |
| Legal Framework | OECD Encryption Assets Report Framework (CARF) |
| Cooperating Countries | 74 countries, including all EU member states, the UK, and most G20 countries (excluding the US, China, and Saudi Arabia) |
| Effective Date | January 1, 2026 (subject to parliamentary approval) |
| First Exchange | 2027 |
5. Industry Impact
Compliance costs increase: Swiss encryption service providers need to upgrade their systems to meet data collection requirements, which may raise operational costs.
Market Transparency Improvement: In the long run, stricter regulations may reduce illegal capital flows and enhance the confidence of institutional investors.
Attention and Controversy: Some industry professionals are concerned about privacy protection and data security, while the Swiss government has promised to balance risks through a review mechanism.
For example, Switzerland previously faced capital reallocation due to strict compliance in traditional financial AEOI, and the encryption sector may encounter similar challenges.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Why? Switzerland plans to exchange encryption information with 74 countries.
This issue summarizes the content related to Switzerland's plan to exchange encryption information with 74 countries based on publicly available information, for reference.
According to the bill passed by the Swiss Federal Council on June 6, 2025, Switzerland plans to automatically exchange encryption asset tax information (AEOI) with 74 countries, aimed at combating tax evasion and illegal capital flows, in response to the Economic Cooperation and Development Organization (OECD) encryption asset reporting framework (CARF) standards.
1. Background of the Event
The background of Switzerland's recent passage of the encryption information exchange bill can be summarized as three main driving forces: international pressure, regulatory demands, and its own financial transformation. The core issue is to address the tax and money laundering risks posed by cryptocurrencies, while also reshaping its global financial position.
(1) The Wave of Tax Transparency Forces Reform
Global unified action against tax evasion. The Organisation for Economic Co-operation and Development (OECD) will launch the Crypto Asset Reporting Framework (CARF) in 2024, requiring member countries to automatically exchange cryptocurrency tax information to close loopholes in traditional financial regulation. Switzerland, as a traditional financial center, will face isolation and may even be listed as a "non-cooperative tax jurisdiction" if it refuses to participate, threatening its financial industry's reputation.
Continuation of historical commitments. Switzerland signed the Automatic Exchange of Financial Account Information (AEOI) agreement as early as 2014, covering 47 countries (including the EU, G20, etc.). This expansion of AEOI to encryption assets is an upgrade to the existing compliance framework, avoiding loss of international trust due to regulatory lag.
(2) The Urgency of Regulatory Gaps in Cryptocurrency
Encryption assets have become a new tool for tax evasion. With the surge in trading volume of cryptocurrencies such as Bitcoin (with a market value of 2.06 trillion USD in June 2025), anonymity makes them easy to use for cross-border tax evasion and money laundering. The Swiss government has clearly stated that this move aims to stop behaviors that "use encryption assets to conceal wealth or transfer illegal funds."
The failure of the traditional banking secrecy system. Switzerland was once famous for its banking secrecy laws, but in recent years it has faced lawsuits for assisting tax evasion (such as the 2013 accountability of UBS by the United States). In the context of the digital finance trend, relying solely on traditional regulation can no longer cover the risks of encryption assets; new rules must be established.
(3) Switzerland's Financial Strategic Transformation
The shift in positioning from "tax haven" to "compliance hub." To shed the negative label of being a "hidden wealth center," Switzerland has actively embraced transparency, with cities like Lugano piloting the acceptance of cryptocurrencies for tax payments. The passage of this bill signifies its attempt to become a global information exchange center for encryption assets, attracting funds from compliant institutions.
Maintain financial competitiveness. If not joining CARF, Swiss encryption service providers may face restrictions on access to the international market. After the bill is passed, Swiss encryption companies can seamlessly connect with 74 countries, reducing compliance costs for cross-border business.
| | | | --- | --- | | Driving Factors | Specific Performance | | International Compliance Pressure | The OECD's CARF framework forces participation to avoid marginalization | | Regulatory Gaps | The risk of tax evasion and money laundering in encryption assets is rising, and regulatory loopholes need to be filled | | Financial Positioning Transformation | Transitioning from a confidential safe haven to a transparent information hub, reshaping international trust | | Economic Competitiveness | Reduce the cross-border compliance costs for enterprises to attract compliant capital inflow |
This bill is not only Switzerland's compromise on global tax transparency but also a key layout for it to actively seize the high ground in encryption regulation and maintain its status as a financial center. Whether it can balance privacy protection and compliance requirements in the future will determine the success or failure of the transformation.
2. Exchange of Information Content
According to the OECD CARF standards, financial institutions are required to collect and report the following encryption asset-related data:
Account Holder Identity Information: Name, Address, Tax Residence, Tax Identification Number (TIN), etc.
Encryption asset account details: including wallet address, account balance (based on the value at year-end or at the time of account closure).
Transaction Record: Involves transaction types, amounts, and timestamps for buying, selling, exchanging, and transferring encryption assets.
Financial Institution Information: Identification information of Swiss encryption asset service providers (such as exchanges, custody platforms) providing services.
Core purpose: To prevent tax evasion and money laundering through the transparency of cross-border taxation involving encryption assets.
3. Scope of Cooperation Countries
Although the complete list is not detailed in public materials, various reports suggest that the cooperating countries have the following characteristics:
Covering the core economies of Europe: including all 27 EU member states (such as Germany, France, Italy), as well as the United Kingdom.
Most G20 countries: including Japan, South Korea, Canada, Australia, Brazil, etc., but excluding the United States, Saudi Arabia, and China (due to incomplete negotiations or differences in regulatory frameworks).
Other Partners: Including traditional financial cooperation countries from Singapore and Switzerland (such as Iceland, Norway, etc.), totaling 74 countries.
Four, Implementation Timeline
Review Mechanism: Switzerland will assess whether cooperating countries meet data security and privacy standards before data exchange.
Phased implementation: Data collection effective January 2026, first exchange in 2027, reserve system upgrade time.
Dynamic Review Mechanism: Before the exchange, it is necessary to assess whether the cooperating country meets data security standards to prevent information misuse.
Exclusion of the US, China, and Saudi Arabia: Due to the existing FATCA system in the United States and the unfinished negotiations between China and Saudi Arabia, they are temporarily not included, reflecting pragmatism.
| | | | --- | --- | | Element | Content | | Type of Information Exchanged | Account Identity, Balance, Transaction Records, Financial Institution Information | | Legal Framework | OECD Encryption Assets Report Framework (CARF) | | Cooperating Countries | 74 countries, including all EU member states, the UK, and most G20 countries (excluding the US, China, and Saudi Arabia) | | Effective Date | January 1, 2026 (subject to parliamentary approval) | | First Exchange | 2027 |
5. Industry Impact
Compliance costs increase: Swiss encryption service providers need to upgrade their systems to meet data collection requirements, which may raise operational costs.
Market Transparency Improvement: In the long run, stricter regulations may reduce illegal capital flows and enhance the confidence of institutional investors.
Attention and Controversy: Some industry professionals are concerned about privacy protection and data security, while the Swiss government has promised to balance risks through a review mechanism.
For example, Switzerland previously faced capital reallocation due to strict compliance in traditional financial AEOI, and the encryption sector may encounter similar challenges.