An SMSF is a ‘self-managed super fund’, which is commonly known as an alternate way to save for retirement. The ‘self-managed’ element means the responsibility for complying with super and tax laws lies with the SMSF’s members, rather than a large company.

With approximately $1 billion AUD worth of crypto assets being incorporated into Australian self-managed super funds, as of March, 2024 – compared to $240 million in 2021 – it’s important to understand how the relationship between SMSFs and crypto currently works in the Australian legal landscape.

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Getting started with crypto in an SMSF isn’t something trustees should do alone. It’s important to get professional advice early and choose a platform that is Australian-based and understands local compliance requirements - especially around account structure, reporting, and ownership.

- Simon Ho, SMSF Specialist Advisor®, Coinstash

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The ATO’s current stance on crypto and SMSFs

The ATO has provided a set of guidelines that outline their current stance on the use of crypto in SMSFs. We’ll go through these in detail below, but it’s important to note that documentation is key in having compliant SMSF crypto holdings.

Key rules for crypto in SMSFs:

• Allowed if within the fund deed and strategy

SMSFs may invest in crypto only if the fund’s deed permits it and it suits the SMSFs investment strategy.

• Clear legal ownership required

SMSF-held crypto must legally be in the SMSF’s name, especially in the case of non-exchange wallets that have no ownership details by default.

• Fair valuation is mandatory

Crypto must be valued in accordance with the ATO’s SMSF valuation guidelines, including regular revaluations of holdings at market value. 

On top of these guidelines, there are also a series of rules that need to be understood in order for any crypto involvement in an SMSF to be compliant. These include:

• Cryptocurrency is not a ‘listed security’ 

Crypto is currently treated by the ATO as a general asset (not a listed security), therefore it doesn’t fall within the related party transaction rules. As a result, SMSFs cannot acquire crypto assets from a related party.

• Sole purpose test applies

An SMSF must be maintained solely for retirement benefits for trustees and members, or to their dependents if a member or trustee dies before retirement.

• Crypto transfers trigger CGT events

Where a trustee or member satisfies a condition of release and the SMSF makes an in specie lump sum payment by way of transfer of crypto, this counts as a disposal. The transfer triggers a capital gains tax (CGT) event, and the SMSF must calculate any capital gain or loss.

As seen by the metrics provided in 2024 showing the growth of crypto investments in SMSFs, we expect this space to continue to grow and change. In January, 2024, the US SEC approved the first-ever ETFs to track Bitcoin, while nine Ethereum ETFS were approved months later in July, 2024. The introduction of ETFs for Bitcoin and Ethereum will make it easier for both SMSF Trustees and Auditors to manage and prove ownership of crypto assets.

“When opening a crypto account for your SMSF, make sure the provider supports accounts in the name of the fund. It’s not just a convenience for reporting - it’s a regulatory requirement. Without the correct legal name on the account, you may not be able to prove ownership at audit and there will be serious compliance issues.”

- Simon Ho, SMSF Specialist Advisor®, Coinstash

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What are the challenges of using a crypto SMSF?

Challenge 1: Trust deed, strategy, and compliance

• You need to confirm your SMSF’s trust deed formally allows crypto investments
• The investment strategy must reflect crypto as part of the portfolio 
• All crypto investments must comply with the Superannuation Industry Supervision Act (SISA) and the Superannuation Industry Supervision Regulations (SISR) concerning investment restrictions

As you can imagine, when it comes to a brand new asset class such as crypto, navigating legal waters can be a difficult task.

Challenge 2: Proof of ownership and custody

In order for an SMSF to be able to prove the ownership and existence of the related crypto assets for the independent audit of the fund, the crypto account must be in the name of the SMSF. This can get complicated as some exchanges don’t enable SMSF accounts to be registered. In addition, any associated storage or custody services or cold storage wallets, must be kept separate and paid for by the SMSF and appropriate receipts kept.

Challenge 3: Portfolio diversity and risk management

While it may seem appealing to invest all of your retirement savings in one particular crypto asset (or solely in crypto in general), this could increase a trustee’s risk. It’s important to consider diversifying SMSF portfolios to minimise return, volatility and liquidity risks. These decisions should be documented in the SMSF Investment Strategy.

“If you're including crypto in your SMSF, consider documenting why it’s in the portfolio. For example, what role does it play, how the fund will manage volatility, and how it supports long-term retirement goals, and what happens when you pass away. That context matters more than price targets.”

- Simon Ho, SMSF Specialist Advisor®, Coinstash

Challenge 4: The sole purpose test

Remember that sole purpose test we mentioned earlier? You and/or your SMSF professional adviser will need to have enough of an understanding of this core Regulation. In a nutshell, the fund needs to be maintained for the sole purpose of providing retirement benefits to the SMSF members. A fund will not meet the sole purpose test if the trustees or anyone else, directly or indirectly, obtains a financial benefit when making investment decisions and arrangements (other than increasing the return to your fund).

When investing in crypto you need to make sure that SMSF members don’t receive any additional personal benefits as contravening the sole purpose test is very serious. In addition to the fund losing its concessional tax treatment, trustees could face civil and criminal penalties.

Challenge 5: Fund-specific wallets and records 

An SMSF fund must have its own crypto wallet, separate to any used by trustees for personal or business purposes. The wallet used for SMSF purposes will need to have a transaction listing for each separate crypto asset which can be brought forth as evidence in the case of an audit.

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How to accurately maintain crypto records for SMSF purposes

SMSF trustees have extensive administrative, reporting, and record-keeping obligations to ensure that their fund complies with superannuation and taxation regulations. And this doesn’t change when crypto assets are incorporated into an SMSF.

The ATO states that SMSFs have to keep detailed records of:

• Receipts when you buy or transfer crypto assets pertaining to the SMSF fund (including but not limited to the date and time of the transaction, the value of the crypto asset in Australian dollars at the time of the transaction, and what specifically the transaction was for)
• Exchange records relevant to the SMSF fund
• Records of agent, accountant and/or legal costs
• Trustee minutes relating to the SMSF’s crypto investment strategy
• Digital wallet records and keys

While it is possible to maintain records of all of these details manually, it can be a nightmare trying to keep track of minute details. But, that’s where we come in. SMSF trustees can use Summ (formerly Crypto Tax Calculator), which will give the trustee the ability to import data from any source relevant to the SMSF’s crypto holdings, as well as automatically track and categorise cost base, fees, and any gains or losses made. By providing a trustee with this information, it makes the task of ensuring an SMSF stays compliant much easier.

“The easier it is for your accountant or auditor to access transaction records, the better. Tools such as Coinstash and Summ, allow you to give view-only access to your accountant, provide audit-ready reports and automatically sync transactions to back-end software workflows. This will save everyone time (and cost!) and reduce back-and-forth at year end.”

- Simon Ho, SMSF Specialist Advisor®, Coinstash

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Sources 

• ‘Digital gold’: More than $1bn of super invested in crypto as prices boom, The Sydney Morning Herald, 2024, https://www.smh.com.au/business/markets/digital-gold-over-1bn-of-super-invested-in-crypto-as-prices-boom-20240229-p5f8vo.html 
• Navigating SMSF crypto assets, Australian Government: Australian Taxation Office, 2025, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-newsroom/navigating-smsf-crypto-assets 
• US SEC approves bitcoin ETFs in watershed for crypto market, Reuters, 2024, https://www.reuters.com/technology/bitcoin-etf-hopefuls-still-expect-sec-approval-despite-social-media-hack-2024-01-10/ 
• SEC approves ether ETFs as crypto moves closer to mainstream, Financial Times, 2024, https://www.ft.com/content/f36d7eeb-03d6-4dab-909a-d5d4524a4edb
• How AMP broke from the pack to add cryptocurrency to the mix, Investment Magazine, 2025, https://www.investmentmagazine.com.au/2025/06/how-amp-broke-from-the-pack-to-add-cryptocurrency-to-the-mix/ 
• The move no other big super fund has dared to try, The Sydney Morning Herald, 2025, https://www.smh.com.au/business/banking-and-finance/the-move-no-other-big-super-fund-has-dared-to-try-20250618-p5m8l7.html 
• What are the SMSF investment restrictions?, Australian Government: Australian Taxation Office, 2025, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-investing/restrictions-on-smsf-investments/what-are-the-smsf-investment-restrictions 
• SMSF for crypto, Reddit, 2023, https://www.reddit.com/r/BitcoinAUS/comments/18zj0ot/smsf_for_crypto/ 
• Non-concessional contributions cap, Australian Government: Australian Taxation Office, 2025, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/non-concessional-contributions-cap