Switzerland Expands Automatic Exchange of Information (AEOI) to Crypto Assets – What Does This Mean?

On February 19, 2025, the Swiss Federal Council adopted a proposal for a significant expansion of the international Automatic Exchange of Information (AEOI). In addition to updating the existing AEOI standard for financial accounts, the AEOI will be extended to crypto assets starting January 1, 2026. This step directly implements the OECD's new Crypto-Asset Reporting Framework (CARF) and aims to ensure tax transparency for cryptocurrencies. But what are the concrete consequences?

1. Crypto Service Providers Must Report Tax Data

Until now, the AEOI focused on bank accounts and securities deposits. However, with the growing importance of cryptocurrencies, the OECD has expanded the AEOI to include crypto assets.

From now on, crypto service providers (e.g., crypto exchanges, wallet providers, and brokers) will be required to determine their customers' tax residency and collect tax-relevant data for reportable customer relationships. These details will then be exchanged between Swiss and partner state tax authorities.

The reporting obligation includes:

• Customer identification data (name, address, tax identification number)

• Information on cryptocurrency transactions, including purchases, sales, exchanges, and transfers

2. Update of AEOI for Financial Accounts

Along with integrating crypto transactions, the existing AEOI regulations for financial accounts are being updated. Specifically:

• Reporting obligations will be expanded

• Exemptions for nonprofit organizations, e-money accounts, and capital deposit accounts will be clarified

3. Stricter Sanctions for Non-Compliance

Switzerland is also tightening penalties for violations of reporting and due diligence obligations. In the future, not only intentional but also negligent misconduct will be penalized. This means that companies or individuals who accidentally violate reporting obligations may also face consequences.

4. More Flexibility in Selecting AEOI Partner States

To allow Switzerland to adapt more quickly to international developments, the authority to approve new AEOI partner states will be transferred from Parliament to the Federal Council. This facilitates alignment with global standards and maintains Switzerland’s competitiveness.

5. Implementation Timeline:

• 2025: Legal framework expected to be adopted

• January 1, 2026: AEOI for crypto assets expected to take effect

• 2027: First data exchange with partner states

  
  

With these changes, crypto assets will now be treated similarly to traditional financial assets in terms of reporting obligations. Pure crypto service providers will be subject to the same compliance, documentation, and reporting requirements as traditional financial institutions.

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