Getting Started with Crypto
Thinking about using your SMSF to buy crypto? You’re not alone. Crypto is one of the fastest growing assets trustees are adding to their SMSFs, but the rules are tight, and mistakes can be costly. This guide covers the basics, and our SMSF Shield resources give you the insider tools to stay compliant, audit-ready, and stress-free.
Setting up an SMSF account with an Exchange
If you’d like to buy crypto through your SMSF, you’ll need to:
- Open a crypto exchange account in the name of your SMSF.
- Complete business verification (personal accounts don’t meet SMSF requirements).
- Once verified, your SMSF can begin trading.
Not all exchanges make SMSF compliance easy. Some provide clear reporting tools and business support, others don’t. See our guides on choosing the right exchange for your crypto.
SMSF Tax Rules for Crypto Investments
One of the key benefits of SMSFs is access to the 15% concessional tax rate – but crypto has to tick the right boxes first:
- Your trust deed must allow crypto investments.
- Your investment strategy must include crypto as an asset class.
- All trades must comply with ATO regulations.
Failing on any of these fronts risks non-compliance.
Our SMSF Shield kit includes sample trustee minutes, investment strategy templates, and compliance checklists.
What Assets Can an SMSF Hold?
SMSFs offer far more flexibility than retail funds. You can hold:
- Traditional assets (shares, property, fixed income).
- Collectables (art, wine, antiques – though strict storage rules apply).
- Cryptocurrencies like Bitcoin and Ethereum.
This flexibility is powerful – but it also means trustees carry the full compliance burden.
Storing Your SMSF Crypto Assets
The ATO requires trustees to maintain accurate and auditable records of all transactions. Most exchanges will log trades automatically, and you can usually export them for year-end reporting.
But remember:
- If you transfer assets off an exchange into a hardware wallet, you’ll need to record addresses and balances at 30 June.
- Auditors may request evidence of control (such as XPUBs or signed messages).
Our SMSF Shield toolkit explains exactly how to document wallet ownership, prepare year-end valuation reports, and satisfy even the toughest auditors.
Tracking Transactions and Reporting
Exchanges typically allow you to download your trade history in spreadsheet format – handy for your accountant.
If you move coins off-exchange, keep a log of:
- Dates and times
- Wallet addresses
- Transaction IDs
Costs of Running an SMSF
Before diving in, factor in costs:
- Compliance costs: auditor, accountant, and financial advisor fees.
- Exchange fees: standard trading, deposit, and withdrawal fees.
- Time: managing compliance is ongoing, not once-a-year.
Regulations to Keep in Mind
The ATO and Superannuation Industry (Supervision) Regulations (SISR) set strict rules for SMSFs. Ultimately, trustees are personally responsible for compliance – even if relying on advisors.
You can invest in crypto through your SMSF, but you’re also the compliance officer, record-keeper, and risk manager. Get the foundations right early to avoid nasty surprises later.
Explore our SMSF Shield membership for toolkits, templates, and checklists built specifically for SMSF trustees holding crypto.
Stay safe. Stay smart. Be Crypto Safe.
Education is your best defence. Unlock member-only guides, checklists, and tools designed to protect your crypto, stay safe and be compliant.
