A growing number of self-managed super funds (SMSF) are choosing to invest in crypto assets. According to the ATO’s quarterly statistical report for March 2025, Australian SMSFs now hold approximately $1.675 billion in crypto assets. If you’re considering adding crypto assets to your SMSF’s investment strategy, there are a few things to think about before you do.
Understanding the risks
While investing in crypto assets can help diversify an investment portfolio, SMSF trustees must carefully consider the potential risks and volatility of crypto assets. You should consider how an investment in crypto assets aligns with your SMSF’s investment strategy – for example, will investing in crypto assets help achieve the retirement goals of the fund’s members and fit with the risk tolerance profile of the members?
Navigating crypto investments
If you decide to go ahead with crypto investments for your SMSF, there are some guidelines that can help you keep your investments secure:
- Correctly name your wallet: Ensure your crypto wallet is correctly registered in your SMSF’s name.
- Keep your investments separated: Never mix personal crypto investments with your SMSF assets. Failing to maintain separate assets can be a breach of the superannuation legislation.
- Choose legitimate platforms: Only purchase and trade on reputable, well-established platforms. Verify the platform is a registered business or licensed by the relevant authority, check for independent reviews and user feedback, ensure the site uses secure HTTPS connections, and make sure that you understand the platform’s policies.
- Maintain detailed records: Thoroughly document all your transactions including purchases, sales and transfers of crypto assets. Remember that sales and transfers are classified as “disposals” and may result in capital gains tax (CGT). Comprehensive records are crucial for accurate CGT calculations. Make sure you keep information about your wallet and any changes that are made to it.
- Protect your wallet password: Never share your wallet password with anyone. Store it securely to prevent unauthorised access to your crypto assets.
- Avoid related party transactions: When transacting in crypto assets with related parties, all transactions must be done at arm’s length.
- Valuation records: Make sure you have proper market valuation records for your auditor.
Protect your SMSF from scams
The ATO has identified a number of instances where trustees have lost crypto investments due to theft, lost passwords, impersonation schemes or collapse of trading platforms. Be vigilant and check out the ATO and ASIC websites for up-to-date information on SMSF schemes and crypto scams and what to do if you think you’ve been scammed. You can also check out ScamWatch for tips on recognising and reporting scams.
