Cryptocurrencies such as Bitcoin are quite relatively new investment assets. Because of the nature of this asset class, care must be taken to ensure all SIS and ATO regulations applying to SMSF’s are met.

Check and update your Investment Strategy if necessary to include Cryptocurrency procedures and as an asset allocation.

We recommend the exchange you use caters for SMSF’s to allow your auditing requirements to be met. An Australian based exchange would have a better understanding of these requirements than an overseas based one, but always check before opening an account.

As with all SMSF investments, they must be in the name of the SMSF (and it’s trustee/s).

The wallet in which you store your currency must also be held in the name of your SMSF (and it’s trustee/s)

For end of year audit purposes, you will need to provide:

  §  A transaction/summary statement of purchases, sales and confirmation of ownership of the 30 June holding balance.

  §  A valuation of the 30 June holding balance

  §  Wallet storage details and probably the public key of your wallet

Crypto Wallet Types Guide

Crypto Wallet Types Guide

Before embarking down the cryptocurrency path, it may be wise to check with your administrator and auditor as to the best way to meet the required compliance standards for all SMSF investments.

Further info can be found on the ATO’s website here.

Self Managed Super Funds