SMSF Crypto and Bitcoin investing

Bitcoin, Ethereum and Ripple are some of the most famous digital or crypto currencies in the world. This emerging asset class is generating a lot of interest due to the following beneficial characteristics

  • Its uncorrelated to other markets and assets
  • It’s an emerging new sector, with nearly 10 years of market history
  • It is a hedge against market uncertainty and a store of value and exchange asset

BITCOIN HISTORICAL PERFORMANCE

  • “The bitcoin world is this new ecosystem where it doesn’t cost that much to start a new bitcoin company, it doesn’t cost much to start owning bitcoin either, and it is a much more efficient way of moving money around the world.” Tim Draper
  • “Bitcoin is the most important invention in the history of the world since the Internet.” Roger Ver
  • “I think the fact that within the bitcoin universe an algorithm replaces the functions of [the government] … is actually pretty cool. I am a big fan of Bitcoin” Al Gore, 45th Vice President of the United States

HOW DO I INVEST IN BITCOINS AND CRYPTO CURRENCIES WITH A SUPER FUND ( SMSF)

WHEN INVESTING IN CRYPTO IN A SMSF OR BITCOIN IN AN SMSF, YOU WILL NEED TO CHECK THE FOLLOWING

  • Does your SMSF deed place restrictions on investing in crypto investments?
  • Does your investment strategy identify your crypto and bitcoin investments?
  • Are your Bitcoin and Crypto assets purchased in the name of your SMSF?
  • Are your Crypto, bitcoin assets stored in a secure wallet and held separate to your personal crypto assets ?

WHAT ARE THE BEST SMSF BITCOIN EXCHANGES

These are Three exchanges that recognise an SMSF account and are easy to deal with

  • Zebpay.com.au – offers 10 coins – 0.40% fee
  • Cointree – offers 100 coins at 0.90% average fee
  • Independent Reserve – offers 15 coins 0.50%
  • Ainslie Wealth – offers 10 coins for a 3% fee ( face to face)

*fees listed are only brokerage fees

Whilst there is a greater choice of crypto exchanges available to individuals, the options for an SMSF are more limited. Trading Fees: range from 0.4% – 1% not including currency and account fees.

SUITABLE SMSF CRYPTO WALLETS

There are two types of smsf crypto or bitcoin smsf wallets

  • Software wallets like – Copay & Exodus
  • Hardware wallets like the Ledger & Trezor

For SMSF crypto, some exchange wallets and hardware wallet will be compliant with super laws as these wallets can be proven to be owned and controlled by the fund.All assets must be held in the SMSF’s name, whereas, software wallets don’t recognise companies and trusts as owners.

WHAT TYPES OF CRYPTO ACTIVITIES ARE YOU
UNDERTAKING IN YOUR SMSF

  • Are you investing – Hodling ? buying and holding
  • Are you trading – frequently trading into different coins
  • Are you mining in your SMSF ?
  • You should check the tax implications for all of these types of crypto activities in an SMSF

END OF YEAR COMPLIANCE REQUIREMENTS

  • Provide a valuation statement of all holdings – most exchanges provide this
  • Provide buy/sell receipts or contract notes – provided by the exchange
  • Provider receipts for your storage vault and wallet purchase.

Tax Treatment of Bitcoins and Crypto Currency

  • If you sell your bitcoins or Altcoins and convert to Australian dollars, you may be subject to capital gains tax,
  • If an SMSF member is in pension phase and they sell their crypto assets, they would not attract capital gains tax, based on the tax exemptions available for pension members under the current super laws.

ATO Bitcoin Tax Page

Why Choose My SMSF for your SMSF Crypto or Bitcoin SMSF ?

  • Our auditors are conversant with Bitcoin investing in a SMSF
  • We offer one of the cheapest SMSF Bitcoin Administration services in the country
  • We can assist with SMSF crypto exchange accounts, secure compliant storage solutions
  • Expertise and Experience : Certified Bitcoin Professional, Blockchain consultant and developer experience, 1st SMSF Crypto service in Australia

More Details

Warning: Seek Financial, Legal and Tax advice before investing in crypto currencies

Our Fees

SMSF Setup $799 with a company trustee
SMSF Annual Administration $1,100 (Accounting +Auditing )
SMSF and Bitcoin Education

Please Note: Our Service is SMSF Crypto Administration service, we do not provide advice on crypto investments or specific tax advice.

SMSF CRYPTO PROVIDERS

ZEBPAY

Is the most secure, cheapest and transparent SMSF Crypto exchange in Australia, with the fastest account opening process we have seen to date. Couple this with live support for SMSF Clients and you have one of the best providers in the market.

Ainslie Wealth

Ainslie Wealth provide face to face purchase and storage solutions for the ‘big 5’ crypto’s together with 5 more of the most popular. Face to face (or OTC) solutions provide comfort for a lot of older SMSF members who prefer this type of service when buying crypto or precious metals.

COINTREE

Cointree has a large range of crypto currencies; referred to as Altcoins; in the Australian market. With leading edge technology a great understanding of crypto SMSF with a background in accounting, they are leaders in this space.

BITCOIN AUSTRALIA

We’re the fastest way to buy Bitcoin in Australia. Once our team receives notification of your payment, your Bitcoin is sent straight to your wallet address.

CRYPTO NEWS

For all your crypto news and information, you cannot go past Crypto News Australia. Independent, thorough and up to date content prepared by competent and passionate crypto journalists.

Click Here

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