How it Works - Cryptocurrency

Cryptocurrency

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.

ATO Guidelines

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.

General Advice Warning

No Advice Express or Implied: The contents of this website are of a general nature only and have not been prepared to take 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 equally to those financial products which are established for your SMSF when you become a client of ESUPERFUND. Any information provided in relation to any financial product or service available through ESUPERFUND is factual information only about the operation of the account and how data is made available to ESUPERFUND. Where this website refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you should seek professional advice (see below) from a financial adviser before making any decision to purchase any financial product referred to on this website. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.

Seek Professional Advice from a Financial Adviser: ESUPERFUND is a no advice model and does not provide financial, legal or tax advice to clients. We recommend that you seek appropriate professional advice in view of your personal circumstances. A licensed financial adviser will consider your personal situation and make a recommendation suitable to your financial needs. All information detailed on our website is purely factual and is general in nature. Accordingly, you should not rely on it. It should always be remembered that Trustees are legally responsible for all the decisions made even if you obtain advice from a Financial Planner. Whilst a Financial Professional can provide advice and assistance you are ultimately responsible for the Fund.

Fees: Fees relating to operating your SMSF with ESUPERFUND are detailed on our fee page here. When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an ATO Supervisory Levy, Company Trustee Setup Fee (where applicable), and Investment Fees.