A SMSF is permitted to invest in any Cryptocurrency (eg Bitcoin). Clients of ESUPERFUND are permitted to use any Australian based Cryptocurrency Exchange to purchase Cryptocurrency for their SMSF.
Australian Based Exchange
As detailed above clients of ESUPERFUND are permitted to use any Australian based Cryptocurrency Exchange to purchase Cryptocurrency for their SMSF. That is clients are only permitted to invest in Cryptocurrency using an Australian based Exchange and cannot trade Cryptocurrency using Overseas based Exchanges. This is due to the complexity involved in accessing the required data in the format required in relation to trading activities and currency movements involved with overseas exchanges. In addition overseas exchanges typically do not recognise SMSF Investors and will typically 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. Most Australian based Exchanges will setup accounts in the name of the SMSF. Unfortunately if the Australian based Exchange selected by you does not setup accounts in the SMSF name then you will be unable to use that Exchange to invest in Cryptocurrency.
In relation to record keeping for Cryptocurrency Investments, ESUPERFUND will send you a Checklist each year guiding you on what documentation we require to prepare your SMSF annual compliance requirements. This is typically all Trades during the Financial Year as well as confirmation of Cryptocurrency Holdings at 30 June each financial year.
Ownership and separation of assets
Super laws require trustees and members to ensure their 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 fund must maintain and be able to provide evidence of a separate cryptocurrency 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. This applies in relation to Cryptocurrency Investments. ESUPERFUND does not advise or recommend that Cryptocurrency Investments are suitable to a particular investor’s financial requirements or needs in relation to their SMSF. Any information provided in relation to Cryptocurrency Investments is factual information only about the operation of the Investment. Accordingly you should read all disclosures relating to investing in Cryptocurrency Investments and any associated disclosures provided by any relevant Cryptocurrency Exchange before making any decision about whether Cryptocurrency Investments are suitable for your SMSF needs. We also recommend that you should seek professional advice from a financial adviser before making any decision to invest in Cryptocurrency Investments for your SMSF.
Set up your SMSF with ESUPERFUND Today!