Swiss Crypto Tax Law Pushed Back: What The New CARF Timeline Really Means
Switzerland has quietly pushed back the effective start date of one of the most closely watched crypto regulations in the world. The country will write the new Crypto‑Asset Reporting Framework (CARF) into law from January 2026, but actual tax data reporting under the rules will not begin before 2027.
This delay underscores how complex it is for governments to align on a global standard for crypto tax transparency, even as trading volumes, institutional interest, and mainstream adoption continue to grow.
CARF Enters Swiss Law In 2026, But Reporting Waits Until 2027
In an official announcement, the Swiss Federal Council confirmed that CARF – the global framework designed to standardize how countries share tax information on crypto assets – will be incorporated into Swiss law as of January 1, 2026.
However, incorporation into law does not mean immediate enforcement. The government has clarified that the actual implementation, including mandatory reporting and international data exchange, will only begin in 2027 at the earliest.
The trigger for this decision was a recent move by the National Council’s Economic Affairs and Taxation Committee (ETAC). Earlier this month, ETAC halted discussions on which partner states Switzerland should exchange crypto-related tax data with under the new framework. Without clarity on counterparties, the Federal Council opted to slow down the rollout.
Existing Crypto Provisions Put On Hold
In the same move, the Federal Council decided that the crypto‑related provisions in two existing pieces of legislation will not come into effect next year:
– The Federal Act on the Automatic Exchange of Information in Tax Matters (AEOIA)
– The corresponding AEOI Ordinance
These acts form the backbone of Switzerland’s participation in the global system for exchanging financial account information. Crypto was supposed to be fully integrated into this architecture, but that integration is now postponed.
At the same time, the government approved amendments to the AEOI Ordinance that prepare the legal ground for CARF and for the broader expansion of automatic tax information exchange to cover digital assets.
New Obligations For Crypto Service Providers
One of the most significant changes introduced through the amended AEOI Ordinance is the clarification of duties for crypto asset service providers operating in or from Switzerland. The ordinance now explicitly sets out:
– A duty to report relevant data on clients and transactions
– A duty to carry out due diligence on users
– A duty to register when certain thresholds or activities are met
Crucially, the document also defines what constitutes a sufficient nexus with Switzerland. This is important for determining whether a platform, exchange, or other service provider falls under Swiss reporting obligations, even if its operations are partially or largely abroad.
Under CARF, crypto exchanges and other intermediaries will be treated in a way that is more comparable to traditional financial institutions. In particular, associations and foundations that provide crypto‑related services will be brought into the scope of the law, and their accounts can be subject to reporting rules.
However, the revised ordinance also provides exemptions. Certain entities may be excluded from the Automatic Exchange of Information regime if they meet specific conditions, which may include limited activities, low risk profiles, or narrow client bases.
Transitional Rules To Ease The Shift To Global Standards
The new legal package includes transitional provisions designed to smooth the adjustment for companies and institutions that will be affected by both the updated Common Reporting Standard (CRS) and CARF.
These transitional rules are intended to:
– Give crypto businesses more time to adapt their internal systems
– Allow financial institutions to update client onboarding and KYC processes
– Prevent immediate double‑burden effects as firms move from national standards to coordinated global ones
For Switzerland, which positions itself as both a crypto hub and a highly compliant financial center, these transition measures are critical. They allow the country to stay in sync with international expectations without putting its domestic industry under unrealistic time pressure.
What Is CARF And Why Does It Matter?
CARF, the Crypto‑Asset Reporting Framework, is an international standard developed to close gaps in tax transparency created by digital assets. While the traditional Common Reporting Standard covers bank accounts and many financial instruments, crypto often escaped these channels due to its decentralized and pseudonymous nature.
CARF aims to change that by:
– Requiring crypto service providers to collect and report tax‑relevant information
– Standardizing the data format so it can be shared and compared across borders
– Enabling tax authorities to identify taxpayers’ crypto holdings and transactions, even when these occur on foreign platforms
Once fully implemented, CARF is expected to significantly reduce the ability of individuals and institutions to hide wealth or income using crypto across jurisdictions. At the same time, it could bring more regulatory certainty for compliant investors and firms.
U.K. Aligns With CARF: First Data Exchanges In 2027
Switzerland is not alone in moving toward this standard. The United Kingdom has already set out its own CARF timeline.
According to a government announcement, the U.K. will implement CARF with the goal of conducting the first international data exchanges in 2027. Under the new rules, U.K. reporting crypto asset service providers (RCASPs) will have to:
– Collect tax‑relevant information on their clients on an annual basis
– Conduct due diligence to determine users’ tax residence and identify reportable accounts
– Maintain and submit this data to the U.K. tax authority for onward exchange under CARF
This obligation explicitly includes information on U.K. resident customers. That means HM Revenue & Customs (HMRC) will gain access to standardized CARF data covering all taxpayers who use a U.K.‑based RCASP, whether individuals or businesses.
U.S. Moving Toward CARF Adoption As Well
The United States is also preparing to integrate CARF into its regulatory framework. Recent developments indicate that the U.S. Treasury Department has already forwarded proposed CARF regulations to the White House for review, a key procedural step before they can be finalized and implemented.
While the U.S. has its own domestic rules for broker reporting on digital assets, aligning these with CARF will be essential if it wants full participation in global crypto tax information exchange. Such alignment would allow U.S. authorities to both receive and share standardized data with other jurisdictions, closing international loopholes for U.S. taxpayers.
Why Switzerland’s Delay Matters For The Crypto Industry
The pushback of Swiss implementation to 2027 has several practical implications:
– Regulatory breathing room: Exchanges, custodians, wallet providers, and other intermediaries operating in Switzerland now have extra time to build or scale their compliance infrastructure, including KYC, transaction monitoring, and reporting systems tailored to CARF requirements.
– Strategic planning window: Crypto businesses can reassess their legal structures, entity locations, and client onboarding policies before full CARF reporting becomes mandatory.
– Uncertainty remains: Because ETAC suspended its discussion on partner states, there is still no final list of countries with which Switzerland will exchange crypto tax data. Firms cannot yet know exactly how broad the reporting network will be.
For investors and traders, the delay does not mean crypto is tax‑free until 2027. Tax obligations have always existed, but enforcement mechanisms and information flows will become more sophisticated once CARF is fully in place. The postponement simply shifts the timing of when authorities will start receiving automatic, cross‑border, crypto‑specific data.
How Crypto Users Should Prepare For CARF
Whether based in Switzerland, the U.K., or elsewhere, crypto users should assume that anonymity before tax authorities will continue to shrink. In anticipation of CARF and similar rules, it is wise to:
– Keep accurate records of all trades, transfers, and staking or yield‑earning activities
– Understand local tax classification of different crypto activities (trading, mining, DeFi, NFTs, etc.)
– Consult tax professionals knowledgeable about digital assets, especially for cross‑border holdings
– Regularly review the terms and compliance policies of exchanges and wallets you use
By the time CARF is fully enforced, authorities will be able to reconstruct years of activity where records exist. Voluntary compliance and transparent reporting today may mitigate future penalties and investigations.
Impact On Switzerland’s Position As A Crypto Hub
Switzerland has long promoted itself as a “Crypto Valley,” combining innovation‑friendly regulation with a strict but predictable financial environment. The delayed CARF timeline reflects a balancing act:
– On one hand, Switzerland needs to remain fully aligned with global tax standards to protect its reputation and avoid being treated as a haven for undeclared wealth.
– On the other, it is wary of moving faster than other major economies in ways that could disadvantage its domestic crypto ecosystem.
By setting CARF into law in 2026 but starting reporting only in 2027, Switzerland signals its commitment to compliance while still giving local players time to adjust and observe how other countries, especially the U.K. and U.S., implement their own versions.
What To Expect Next
In the coming months and years, several developments are likely:
– ETAC will revisit which partner states Switzerland will exchange CARF data with, a decision that will shape the real scope of the regime.
– Detailed technical guidance will emerge specifying exactly what data crypto service providers must collect and how it should be formatted.
– More countries will confirm their own CARF timelines, gradually turning the framework into a global norm rather than a patchwork of national experiments.
For now, the key takeaway is clear: crypto tax transparency is no longer a question of if, but when. Switzerland’s delay to 2027 does not change the overall direction of travel. It simply sets a new clock for investors, platforms, and regulators to get ready for a world in which cross‑border crypto holdings and transactions are automatically visible to tax authorities around the globe.