Switzerland is advancing forward with plans to exchange data on encoding automatically with 74 partner countries, including the United Kingdom and all European Union member states.
The Council announced on June 6 that the Federal Council, the Swiss government, has adopted a bill to enable automatic exchange of information (AEOI) on encryption with partner countries.
The proposal also suggests sharing data with most G20 countries. This procedure excludes the United States, Saudi Arabia and China, according to the Swiss federal government.
The draft law is currently under discussion in Parliament, and if approved, the AEOI framework for encryption will be valid on January 1, 2026.
The first exchange of data expected in 2027
The new proposal follows the AEOI’s international legal rules for the AEOI legal rules regarding the accredited assets approved on February 19, 2025.
During a June 6 meeting, the council relied on AEOI approval, targeting the first exchange of encryption data in 2027.
Before the actual exchange of data on encryption assets, the Federal Council suggested reviewing whether the AEOI stimulated partner continues to fulfill the requirements of the standard.
The council said: “In order to achieve this purpose, the AEOI’s current review mechanism must also cover the future account information also AEOI in relation to encryption assets, which requires amending the Federal Decree opposite accordingly,” the council said.
The exchange depends on mutual benefit
In this announcement, the Federal Council stressed that AEOI should only happen if the partner states are interested in exchanging information with Switzerland.
The states must also meet the requirements for reporting the encrypted assets (CARF) developed by the Organization of Economic Cooperation and Development (OECD).
The Council indicated that the European Union will implement AEOI on the assets of encryption as part of the eighth update of guidance on administrative cooperation, or DAC 8. The guidance applies to countries that do not yet comply with the criteria for reporting OECD in all European Union member states.
“The coding service providers from Switzerland will have a direct commitment to reporting in the member states of the European Union from that point, and this will continue until Switzerland Echr will implement with all the European Union member states,” the council said in a statement.
According to the Federal Council, the adoption of Crypto Aeoi will help Switzerland meet international tax transparency obligations, enhance its financial sector’s reputation and establish a stadium for local encryption companies.
“Therefore, Switzerland has great interest in integrating into this network and AEOI’s implementation of encryption assets from 2026 onwards, especially since Switzerland is likely to receive data related to tax assets from partner countries,” the council said.
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