This is an area that is becoming increasingly discussed within the self-managed superannuation fund (SMSF) environment and we encourage those that are interested in this type of investment contact us first to discuss the implications as there is no ‘one size’ fits all.
Some areas of compliance to review but not limited to, are:
- Separation of assets – An electronic crypto currency wallet is a pre-requisite for purchase, one of the potential issues here is that some providers do not cater for self-managed superannuation fund (SMSF) titles on this wallet. .
- Acquisition from a related party – Ensure that this purchase is made from an independent third party.
- Investment strategy – This will need to be reviewed, and potentially updated, to ensure this is an allowable investment by the Fund.
- Trust Deed – As with your SMSF’s investment strategy, this will need to be reviewed, and potentially updated, to ensure this is an allowable investment by the Fund.
Please note that there are taxation rulings and determinations issue by the Australian Taxation Office (ATO) and capital gains tax rules may apply to the disposal of the asset.