A SMSF is permitted to invest in cryptocurrency. Clients of ESUPERFUND are permitted to use any Australian based cryptocurrency exchange to purchase cryptocurrency for their SMSF. To simplify the cryptocurrency application process, ESUPERFUND has established direct arrangements with the following Australian based exchanges allowing clients to easily apply for a cryptocurrency account and have the account linked to ESUPERFUND to receive data:
Australian Based Exchange
If you elect to establish a cryptocurrency account with an exchange other than Digital Surge, you are only permitted to use an Australian based cryptocurrency exchange and cannot establish a cryptocurrency account using an overseas based exchange. This is due to the complexity involved in accessing data in the format required relating to trading activities and currency movements involved with overseas exchanges. In addition, overseas exchanges typically do not recognise SMSF investors and may setup accounts in the trustees individual names. This is a breach of SMSF laws and not allowed.
By using the above Australian based cryptocurrency exchange (Digital Surge), ESUPERFUND is able to electronically access trading data relating to your SMSF cryptocurrency investments and transactions, in order to attend to the SMSF annual compliance requirements. No data is required from you each year as we already have the data. It is important to understand that only electronic data files are provided to ESUPERFUND. We have absolutely no access to your cryptocurrency account and cannot actually login to access the required data.
Cryptocurrency Exchange Not Compulsory
It is not compulsory to use the above Australian based cryptocurrency exchange (Digital Surge) and you are permitted to invest in any Australian based cryptocurrency exchange for your SMSF as desired. However, if you establish a cryptocurrency account for your SMSF directly with other Australian based exchanges, data will not be accessible by ESUPERFUND and you will need to source and provide this data to ESUPERFUND annually. In addition, ESUPERFUND provides a client login portal to clients with daily data of all your SMSF investments. Where you elect to invest in cryptocurrency and use an Australian based exchange other than Digital Surge, we will be unable to receive daily data on these accounts, and in turn will not be able to report details of these accounts daily.
Account must be setup in SMSF Name
When establishing a cryptocurrency account with an Australian based exchange the account must be setup in the SMSF name and not in the personal names of the Trustees. Digital Surge allows you to setup an account in the name of your SMSF.
Accessing Information by ESUPERFUND
Investment and transaction data is electronically accessible by ESUPERFUND for accounts opened with Digital Surge. This enables our office to attend to your SMSF's annual compliance obligations. No records are required from you each year on cryptocurrency investments made with Digital Surge as we already have access to the data. It is important to understand that only electronic data files are provided to ESUPERFUND. As detailed above we have absolutely no access to your trading platform and cannot actually login to your cryptocurrency account to access the required data. Unfortunately, if you establish a cryptocurrency account with another Australian based cryptocurrency exchange (ie other than with Digital Surge), ESUPERFUND will be unable to access data electronically and you will need to enter all data manually. This is administratively inconvenient for you as the trustee and ESUPERFUND as the administrator.
No Obligation to Invest in Cryptocurrency
It is important to understand that the investment decisions for your SMSF always remain with you as the SMSF trustee giving you total control of your SMSF. You are under no obligation to invest in cryptocurrency if you elect not to do so.
ESUPERFUND Provides No Investment Advice
ESUPERFUND does not provide investment advice and cannot advise you on cryptocurrency investments. You as the SMSF trustee are responsible for making all trading and investment decisions for your SMSF, based on your SMSF's particular financial situation and needs.
Ownership and Separation of Assets
Superannuation laws require trustees and members ensure that SMSF assets are held separately from personal assets. A SMSF’s cryptocurrency investments must be held and managed separately from the personal or business investments of trustees and members. This includes ensuring the SMSF has clear ownership of the cryptocurrency. This means the SMSF must maintain and be able to provide evidence of a separate cryptocurrency account or wallet for the SMSF from that used by trustees and members personally.
The ATO have released guidelines in relation to investing in cryptocurrency for your SMSF. We suggest that you read and understand these guidelines prior to investing in cryptocurrency for your SMSF. These ATO guidelines can be found here.
Cryptocurrencies ASIC Warnings
ASIC has released information in relation to investing in cryptocurrency for your SMSF. We suggest that you read and understand this information prior to investing in cryptocurrency for your SMSF. These ASIC guidelines can be found here.
To establish a cryptocurrency account with Digital Surge for your SMSF, you will need to apply using the designated link below. This will ensure that ESUPERFUND is linked to your Digital Surge cryptocurrency account and is able to electronically access trading data relating to your SMSF cryptocurrency investments and transactions, in order to attend to the SMSF annual compliance requirements.
No financial product advice or recommendation
No Advice Express or Implied: It is important to understand that ESUPERFUND has not taken into account any particular investor's objectives, financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products either expressly or implied. ESUPERFUND expressly states that it does not recommend, represent as suitable, or endorse any financial product or service available through ESUPERFUND. This applies in relation to the Digital Surge Account. ESUPERFUND does not advise or recommend that this product is suitable to a particular investor’s financial requirements or needs in relation to their SMSF. Any information provided in relation to the Digital Surge Account is factual information only about the operation of the account and how data is made available to ESUPERFUND. Accordingly you should read the website, terms and disclosures relating to the Digital Surge Account before making any decision about whether the Digital Surge Account is suitable for your SMSF needs. We also recommend that you should seek professional advice from a financial adviser before making any decision to use the Digital Surge Account for your SMSF.