Why? Switzerland plans to exchange encrypted information with 74 countries

This issue summarizes Switzerland's plan to exchange crypto-related information with 74 countries based on public information for reference.

According to the bill passed by the Swiss Federal Council on June 6, 2025, Switzerland plans to automatically exchange crypto-asset tax information (AEOI) with 74 countries to combat tax evasion and illegal capital flows, in response to the Crypto-Asset Reporting Framework (CARF) standard of the Organization for Economic Cooperation and Development (OECD).

1. Background of the Event

The background of Switzerland's passage of the Encrypted Information Exchange Act can be summarized as three major motivations: international pressure, regulatory needs and its own financial transformation. The core is to deal with the tax and money laundering risks brought by cryptocurrencies and reshape its global financial status.

(I) The wave of tax transparency forces reform

A unified action to combat tax evasion worldwide. The Organization for Economic Cooperation and Development (OECD) launched the Crypto Asset Reporting Framework (CARF) in 2024, requiring member countries to automatically exchange crypto tax information to plug loopholes in traditional financial supervision. As a traditional financial center, Switzerland will be isolated if it refuses to participate, and may even be included in the blacklist of "uncooperative tax havens", threatening its financial industry reputation.

Continuation of historical commitments. Switzerland signed the Automatic Exchange of Traditional Financial Account Information (AEOI) Agreement as early as 2014, covering 47 countries (including the EU, G20, etc.). The extension of AEOI to crypto assets this time is an upgrade of the existing compliance framework to avoid the loss of international trust due to regulatory lags.

(II) Urgency of cryptocurrency regulatory loopholes

Crypto assets have become a new tool for tax evasion.With the surge in trading volume of cryptocurrencies such as Bitcoin (BTC market value reached 2.06 trillion US dollars in June 2025), anonymity makes it easy to be used for cross-border tax evasion and money laundering. The Swiss government has made it clear that this move is aimed at preventing the use of crypto assets to hide wealth or transfer illegal funds.

The failure of the traditional bank confidentiality system.Switzerland was once famous for its bank secrecy law, but in recent years it has been repeatedly sued for assisting tax evasion (such as the US's pursuit of UBS in 2013). Under the trend of digital finance, traditional supervision alone can no longer cover the risks of crypto assets, and new rules must be established.

(III) Switzerland's own financial strategic transformation

From a "tax haven" to a "compliance hub".In order to get rid of the negative label of "secret wealth center", Switzerland actively embraces transparency. For example, cities such as Lugano have piloted the acceptance of cryptocurrency tax payments.

The passage of this bill marks its attempt to become a global crypto asset information exchange center and attract funds from compliant institutions.

Maintain financial competitiveness.If they do not join CARF, Swiss crypto service providers may face restrictions on international market access.After the passage of the bill, Swiss crypto companies can seamlessly connect with 74 countries and reduce the compliance costs of cross-border business.

This bill is not only Switzerland's compromise on global tax transparency, but also its key layout to actively seize the commanding heights of crypto regulation and continue its status as a financial center. Whether privacy protection and compliance requirements can be balanced in the future will determine the success or failure of the transformation.

2. Content of information exchange

According to the OECD's CARF standard, financial institutions need to collect and report the following crypto-asset-related data:

Account holder identity information: name, address, tax residence, tax identification number (TIN), etc.

Crypto asset account details: including wallet address, account balance (based on the value at the end of the year or when the account is closed).

Transaction records: transaction types, amounts and timestamps involving the sale, exchange and transfer of crypto assets.

Financial institution information: identification information of Swiss crypto asset service providers (such as exchanges and custody platforms) that provide services.

Core purpose: to prevent tax evasion and money laundering using crypto assets through cross-border tax transparency.

III. Scope of Cooperation Countries

Although the complete list is not listed in detail in public information, based on reports from various parties, the cooperation 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: covering 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 Singapore and Switzerland's traditional financial partners (such as Iceland, Norway, etc.), a total of 74 countries.

Fourth, implementation timetable

Review mechanism: Switzerland will assess whether the partner country meets the data security and privacy standards before data exchange.

Phase-based implementation: Data collection will take effect in January 2026, the first exchange will be in 2027, and time for system upgrades will be reserved.

Dynamic review mechanism: Before exchanging data, it is necessary to assess whether the partner country meets the data security standards to prevent information abuse.

Exclusion of the United States, China and Saudi Arabia: Because the United States already has a FATCA system and China and Saudi Arabia have not completed negotiations, they will not be included for the time being, reflecting pragmatism.

V. Industry Impact

Increased compliance costs: Swiss encryption service providers need to upgrade their systems to meet data collection requirements, which may push up operating costs.

Improved market transparency: In the long run, stricter supervision may reduce illegal capital flows and enhance the confidence of institutional investors.

Concerns and Controversies: Some industry insiders are concerned about privacy protection and data security. The Swiss government has pledged to balance risks through a review mechanism.

For example, Switzerland has previously faced capital reconfiguration due to strict compliance in traditional financial AEOI, and the crypto sector may face similar challenges.