Why Switzerland's Temporary Halt on Crypto Highlights Worldwide Regulatory Disunity

Switzerland Postpones Crypto Tax Data-Sharing Until 2027

Switzerland has opted to push back the start of its crypto tax data-sharing program to 2027, reigniting discussions about how quickly global cryptocurrency regulations are coming together. Although the country will formally adopt the OECD’s Crypto-Asset Reporting Framework (CARF) into law on January 1, 2026, the actual exchange of information with international tax authorities will not begin until at least the following year.

This postponement comes after Switzerland’s Economic Affairs and Taxation Committee halted talks to determine which countries would participate as partners under CARF. The move highlights the intricate challenges involved in achieving international cooperation for crypto transparency.

Two-Stage Implementation Plan

The Swiss Federal Council has introduced a phased strategy. The first step involves updating national tax regulations to match international standards. The second phase will only commence once Switzerland secures reciprocal agreements with other jurisdictions, ensuring that data exchanges are mutual.

Under the revised legal framework, which parliament is expected to approve by the end of 2025, crypto service providers in Switzerland will be required to register, conduct customer due diligence, and report assets held by clients with significant ties to the country. However, these obligations will not take effect until Switzerland confirms that major economies—such as the United States, China, and Saudi Arabia—are also participating in CARF-compatible systems, which they have yet to implement.

Global Progress and Challenges

The CARF initiative, introduced by the OECD in 2022, is designed to curb tax evasion by mandating the automatic sharing of crypto account information between countries. Switzerland’s delay draws attention to the difficulties in reaching agreement among leading economies. So far, 75 countries—including EU members, India, and Argentina—have committed to CARF, but their timelines for implementation differ.

For instance, the United States is still evaluating a proposal from its Internal Revenue Service to join CARF, while Brazil has suggested a separate tax on international crypto transactions to better align with global practices.

Implications for Swiss Crypto Businesses

The delay introduces a period of uncertainty for Swiss crypto companies, which must now navigate evolving regulations. The updated ordinance provides certain exemptions and transitional measures to help businesses adjust, but those with international operations face increased risks until data-sharing agreements are finalized. Analysts warn that this transitional phase could expose gaps in oversight, potentially allowing regulatory arbitrage until global standards are fully harmonized.

Broader Impact on International Regulation

Switzerland’s cautious stance highlights the ongoing tension between regulatory goals and practical realities. While 74 jurisdictions—including all EU countries and most G20 members—have shown interest in CARF, the absence of key players like the U.S. and China complicates the framework’s effectiveness. For now, Switzerland’s measured approach may serve as an example of the challenges in balancing innovation in the crypto sector with the need for robust compliance and fiscal responsibility.