Keeping Your SMSF Safe When Investing in Crypto
With more and more self-managed super funds (SMSFs) investing crypto, it’s important to be aware of the risks.
We’ve seen cases where SMSF trustees have lost their crypto because of theft, lost passwords, or falling for scams — and we don’t want that happening to you.
Here are some practical tips to help you manage crypto investments in your SMSF safely and keep on top of the compliance requirements:
1. Make Sure Your Wallet Is Named Correctly
Your SMSF’s crypto wallet needs to be in the name of the SMSF, not in your personal name. This ensures the assets are properly owned by the fund and keeps you compliant with the rules.
2. Keep Personal and SMSF Investments Separate
Never mix your personal crypto with your SMSF’s crypto. Keeping them separate is key, as combining them can breach the Superannuation Industry (Supervision) Act 1993 and cause compliance headaches.
3. Stick to Reputable Platforms
When buying or trading crypto, only use well-known, trustworthy platforms.
✔ Check they’re registered or licensed.
✔ Read reviews and look at what other users say.
✔ Make sure the site is secure (look for HTTPS).
✔ Understand their refund, dispute, and security policies.
4. Keep Good Records
Record every purchase, sale, and transfer. Sales and transfers count as disposals and may create capital gains tax (CGT) obligations, so keeping detailed records will save you trouble later. Also, note any changes made to your wallet over time.
5. Protect Your Wallet Password
Never share your wallet password and make sure it’s stored safely. Losing access to your wallet could mean losing your crypto for good — so treat it with care!
6. Avoid Related Party Transactions
If you’re dealing with related parties, make sure everything is done at arm’s length — meaning at fair market value. This keeps your fund compliant and avoids unnecessary risk.
7. Have Accurate Valuation Records
Auditors will need market valuations for all your crypto holdings, so make sure you have up-to-date records ready when it’s time for your SMSF’s annual audit.
If are thinking that you would like to start investing through an SMSF please let us know so that we can help make this as straight forward as possible for you!