Self Managed Super Fund Investment in Bitcoin and Cryptocurrencies

How to add Bitcoin and cryptocurrencies to a self-managed super fund - Stockhead

Crypto-currencies Home Investments Crypto-currencies. When you trade any c rypto assets, please follow the steps as below: Check if your trust deed and investment strategy allow trustee to invest in c rypto-currency, such as bitcoin. Please note any SMSFs set up by iCare Super will allow trustees to invest in crypto-currency Crypto-currency and bitcoin must be purchased in the name of your SMSF or SMSF trustee Purchase the crypto and keep all in your wallet When you sell crypto assets, you need to transfer the proceeds to the SMSF bank account If possible, check your auditor is comfortable with auditing bitcoin or crypto-currency.

The auditor at iCare Super can audit these crypto assets.

Cryptocurrency

Some shares can be bought using bitcoins, these shares must be bought in the name of your SMSF or trustee We recommend reading the following ATO guidelines before you starting investing in cryptocurrencies. ATO Cryptocurrencies Guidelines Trustees should meet the guidelines in the above link and detail in minutes how they meet the guidelines.

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The information applies the law as stated at the time of writing, and is no substitute for financial advice. Book an appointment with an expert. Trustees wanting to invest in cryptocurrencies need to make sure the auditors of the SMSF can identify the following: Trading history for the wallet at the IP address.

This needs to match up precisely with the transactions from the bank account of the fund. Auditors will check that the transactions are for the sole benefit of the SMSF, and not an individual.

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Valuation Any assets held by a super fund must be valued at market value. Investment Individual Tax Superannuation.

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Crypto-currencies

In short, the Australian Taxation Office ATO states you can invest in cryptocurrency however, it is when you read their SMSF investing cryptocurrencies guidelines that you will discover it is not as easy as you think. Firstly, you should read and interpret whether your SMSF trust deed allows you to even consider cryptocurrencies as an investment choice. Secondly, you may need financial advice to determine if it fits in within your investment strategy or alternatively you may need to alter your investment strategy.

This should be in writing and reviewed regularly to ensure it continues to reflect the purpose and circumstance of your fund and its members. If you pass the two hurdles mentioned above, I think this can be the one that stumbles most investors.

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 reason I feel this could be the sticking point for most is that it is difficult to acquire a cryptocurrency wallet in the name of the trustee. The ATO does not go into great detail on how this can be achieved, but I feel the most practical way is via a hardware wallet that is dedicated to the SFMF cryptocurrencies holdings.

Not only will this achieve the separation of assets from that of the trustee and members, but it will also allow for an effectively secure method to store your cryptocurrencies that is separate from your PC or phone wallet. This eliminates the threat of being deliberately or accidently compromised over the internet.

Can i buy bitcoin with my smsf

How to add Bitcoin and cryptocurrencies to a self-managed super fund - Stockhead

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