Can Your SMSF Invest In Crypto?

CRYPTO MYTH: “My SMSF cannot invest in crypto”

If you have a self managed super fund, there are no laws preventing an SMSF from investing in cryptocurrency.

But keep in mind that if you are going to do this –

• You must read the trust deed – Trust deed needs to allow an investment in digital currencies or cryptocurrencies. Your trustees of your super fund may be able to amend your trust deed to include it.
  
  
• The investment must meet the ‘sole purpose test’ – You can’t invest in crypto and get benefits outside of super, because you’ve invested in through your SMSF.
  
  
• You cannot acquire crypto from a related party – Think of your immediate family members, your extended family, or any companies of trust you hold outside of super. You cannot buy it from them. Keep in mind that for NFTs as well.
  
  
• Need to consider it in the investment strategy – Part of the running of an SMSF is to make sure your investments fall within the funds investment strategy. It’s a document you can prepare and update as you need to so it can change.
• Need to be ‘owned’ in the SMSF – ensure correct names on exchange accounts, wallets, etc.
• Keep a very good record. Your SMSF is audited!

Can you put a hundred percent of super in cryptocurrency?

Keep in mind that cryptocurrency is very high risk. Your investment strategy needs to include considerations for an appetite to risk and it may be way too high risk to have a hundred percent on there. That doesn’t mean there’s any legislation stopping you doing that.

Watch the full webinar, ‘Cryptocurrency Tax Masterclass’ at https://fb.watch/acHFQ4OHBc/

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