By: Adv. Idan Ben-Yacov | February 26, 2025 | Photo: Tamar Matsafi | Edited by: Funder

Even in the world of crypto—once thought to be secretive—regulatory realities and international information-sharing have been growing rapidly in recent years. Everyone must now consistently and proactively adapt their wealth and risk management strategies to stay ahead.

Switzerland’s Decision: A Turning Point for Crypto and Global Transparency

The recent move by the Swiss Federal Council to expand automatic tax information exchange to include crypto assets marks a major shift in international tax compliance and wealth management.

As someone deeply involved in family wealth management, I view this as a pivotal moment that will reshape the rules of the game for many investors—especially given Switzerland’s historical image as a stronghold of banking secrecy.

Switzerland, once a symbol of discretion, has increasingly aligned with the global trend of transparency. It was only a matter of time before crypto would be included. This move confirms a new reality: there are no more tax havens in the digital age.

The trend is clear and irreversible: global transparency and information sharing are becoming the norm. Countries like Switzerland are striving to strike a balance—remaining relevant as financial hubs, even in crypto, while avoiding inclusion on international “blacklists” for supporting tax evasion.

History shows that regulatory shifts often create new opportunities. When Swiss banking secrecy was lifted, many predicted Switzerland’s decline as a global financial center. In reality, the country adapted, professionalized, and retained its global standing.

A Double-Edged Sword

On the one hand, this decision enhances regulatory clarity and strengthens the legitimacy of the crypto market—helping it move from a “Wild West” perception to a respected part of the traditional financial system.

On the other hand, it reduces the appeal of Switzerland as a safe haven for those seeking to avoid tax scrutiny.

What Crypto Wealth Holders Must Understand

For families and investors—especially those who gained significant wealth through crypto in recent years—this is a wake-up call.

The message is clear:
Even in the crypto world, once considered anonymous, regulatory oversight and international reporting are expanding fast.

Relying on outdated strategies—like holding assets in obscure jurisdictions without adjusting structures, tax planning, or disclosure—is no longer viable.

My Recommendations to Clients

1. Act before January 2026. Don’t wait—settle your tax position now.
2. Reassess your crypto holdings structure.
   A well-planned setup using corporations or trusts, in the right locations, can legally reduce tax exposure while staying transparent and compliant.

A Broader Challenge: Crypto vs. Traditional Finance

This also highlights the growing disconnect between the rapid development of crypto (especially major coins used in commerce) and the slower adaptation of legacy banking systems and regulators, which still lack the tools to deal with these assets effectively. This gap creates instability and uncertainty, especially for small investors.

An additional takeaway: crypto should be integrated into holistic wealth strategies, not treated as an isolated asset.

Final Thought

Switzerland’s decision is just the first drop in what may soon become a downpour of crypto regulation and data sharing.

As with any major shift, risks and opportunities go hand-in-hand.
With the right planning and early action, it’s not only possible to weather the storm—but to thrive in it.

**_{This is an unofficial English translation of a Hebrew-language article originally published in February 2025. While efforts were made to accurately convey the content and intent of the original, certain legal or financial terms may have been simplified or interpreted for clarity. This translation does not constitute legal, financial, or investment advice and should not be relied upon as such. For complete accuracy and context, please refer to the original Hebrew publication.}