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.
Australian Based Exchange
If you elect to establish a cryptocurrency account with an exchange, 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.
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.
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.
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.