Crypto & SMSFs in Australia: A 2025 Compliance Guide

Cryptocurrency is becoming an important part of wealth strategies in Australia, and some investors are choosing to hold digital assets through their self-managed super funds (SMSF). With crypto investments in SMSFs growing to AU$3.1 billion as of June 2024, it’s important to understand how SMSFs and crypto work together, and what rules apply under current Australian regulations.

In this guide, we explain how SMSFs can legally hold crypto, the compliance obligations trustees must meet, and how Coinstash helps make the process simpler. Whether you are exploring the idea or preparing to set up an SMSF, this guide will cover the essentials.

Before you read on, please note this article is for general information only. Coinstash is not licensed to give financial product advice under Australian law. If you are thinking about SMSFs or have any questions about SMSFs, it’s a good idea to always speak with someone who holds an Australian Financial Services Licence. 

5 Key Takeaways

• The ATO allows SMSFs to invest in cryptocurrency if it is permitted by the trust deed and investment strategy.
• All crypto held by an SMSF must have clear legal ownership in the fund’s name, separate from personal holdings.
• Valuations of crypto must follow ATO valuation guidelines and be updated regularly.
• Crypto transactions (buy, sell, swap) typically trigger capital gains tax (CGT) events, even within an SMSF.
• Coinstash offers SMSF-ready accounts and tools to streamline record keeping, reporting, and audit compliance.

The ATO’s Position on Crypto and SMSFs

The ATO has issued guidelines that set out the rules for using crypto within SMSFs. These ensure that crypto assets are treated like any other investment held by the fund: properly structured, securely stored, and clearly documented. If you're considering setting up a crypto SMSF, it's critical to understand these rules upfront.

Key considerations for SMSFs investing in crypto:

1) Your fund deed and investment strategy must allow it

The SMSF’s trust deed must permit digital assets, and the investment strategy must include crypto as an asset class. It should outline how crypto supports retirement goals, including considerations for risk, liquidity, and diversification.

2) Legal ownership must be clear and provable

All crypto must be held in the name of the SMSF. This applies to both exchange accounts and wallets. Using personal accounts or wallets, even if you intend to track it separately, is a breach of the rules. If ownership can't be proven at audit time, your fund’s compliance status could be at risk.

3) Crypto must be valued fairly and consistently

Crypto must be valued in accordance with the ATO’s SMSF valuation guidelines. This means using reliable market data, ensuring the valuation reflects the asset’s market value in Australian dollars, and revaluing at least once a year (typically at 30 June). All valuations must be supported by proper records.

4) Personal use or benefit is not allowed

An SMSF must be maintained solely for the purpose of providing retirement benefits. Any personal use of crypto, such as using a token for discounts or services, could breach the sole purpose test and result in significant penalties.

5) Transfers and disposals may trigger tax events

If your SMSF transfers crypto out of the fund, such as when paying a member in-specie, this is considered a disposal and triggers a CGT event. The fund will need to calculate the capital gain or loss at the time of transfer.

6) Crypto is not treated as a listed security

Under current ATO guidance, cryptocurrency is considered a general asset, not a listed security. This distinction matters because SMSFs are not allowed to acquire assets from related parties unless the asset is a listed security. As a result, crypto must always be purchased by the SMSF directly, not transferred from a member’s personal holdings.

Common Challenges of Running a Crypto SMSF

While a crypto SMSF gives trustees more control and flexibility, it also brings additional responsibilities. Here are some of the most common challenges trustees face:

1) Aligning your trust deed and investment strategy

Your SMSF's trust deed must specifically allow for digital assets. If it's not already included, you'll need to update the deed. Your investment strategy must also outline how crypto fits into your portfolio, including how you'll manage risk and maintain diversification. These documents will be reviewed at audit, so they must be clear and up to date.

2) Proving ownership and managing custody

To satisfy audit requirements, you must be able to prove that the crypto is owned by the SMSF, not by you personally. This means using wallets or exchange accounts registered in the name of the fund. Cold wallets or custodial services must also be SMSF-specific, with supporting receipts and clear separation from personal assets.

3) Diversification and Risk Management

Investing a large portion of your super in one crypto asset, or relying solely on crypto, increases the level of risk for trustees. A well-structured SMSF portfolio should consider volatility, liquidity, and long-term return expectations. Clearly documenting the role of crypto, how risks will be managed, and how it supports retirement objectives is essential. These decisions should be outlined in the SMSF investment strategy.

4) Understanding and applying the sole purpose test

Your fund must exist solely to provide retirement benefits. This means no personal use of SMSF-held crypto, even indirectly. Any breach of the sole purpose test can lead to serious penalties and the loss of your fund's tax concessions. Make sure both you and your advisers understand how this test applies to digital assets.

5) Using SMSF-dedicated wallets and maintaining records

The SMSF must use its own wallets, completely separate from any used by trustees personally. Each wallet should include transaction records for every crypto asset held. These records must be available for audit and supported by documentation such as invoices, exchange logs, and valuation references.

Keeping Accurate Records for Crypto SMSFs

When it comes to SMSFs, record keeping is not optional, it is essential. Trustees are responsible for maintaining accurate, detailed records that prove the fund’s crypto investments are compliant with ATO rules. This applies whether your SMSF is holding a small amount of crypto or managing a larger portfolio.

The ATO expects SMSFs holding crypto to maintain clear and comprehensive documentation, including:

• Receipts for all crypto purchases, sales, or transfers, including date, time, value in AUD, and purpose
• Exchange account statements registered in the SMSF’s name
• Records of legal, tax, or accounting advice and fees
• Minutes of trustee meetings documenting crypto decisions
• Wallet addresses, custody records, and private key controls
• Valuation evidence for annual reporting, including price sources and dates

How Coinstash Supports Crypto SMSF Compliance

At Coinstash, we know that SMSF trustees face strict compliance, reporting, and audit requirements when holding crypto. Our platform is purpose-built for crypto SMSFs, helping trustees manage their investments confidently and stay aligned with ATO expectations. These include:

• Specialised SMSF accounts: Trustees can open accounts in the legal name of their SMSF, ensuring clear ownership and compliance with ATO requirements.
• Integrated reporting and exports: Generate audit-ready transaction histories, wallet statements, and CSV exports, with direct integrations into leading accounting and tax software.
• Real-time crypto valuations: Access live market pricing and revaluation tools to meet ATO valuation guidelines and support accurate end-of-year reporting.
• Account segregation tools: Keep SMSF assets completely separate from personal holdings. Transfers between personal and SMSF accounts are blocked to reduce compliance risks.
• Adviser access: Trustees can grant secure, view-only access to their accountants, advisers, and auditors. This makes it easier to share records, reduce back-and-forth, and streamline year-end audits.
• Ongoing support and education: Stay informed with educational content, practical guides, and SMSF-specialist support to help you keep up with regulatory requirements and best practices.

When choosing a crypto provider for your SMSF, it’s important to select one that truly understands the unique requirements of trustees. Coinstash is Australia’s leading crypto SMSF investment exchange, helping thousands of Australians invest in digital assets through their SMSFs since 2017. Backed by an expert team with deep knowledge of both digital assets and SMSF regulations, Coinstash provides the infrastructure to meet compliance needs and deliver audit-ready documentation, giving trustees the confidence to manage their fund securely and compliantly.

Closing Thoughts

A crypto SMSF offers trustees the ability to take greater control of their retirement strategy while gaining exposure to a new and evolving asset class. With that opportunity comes the need to follow ATO rules, keep accurate records, and carefully document how crypto supports long-term objectives.

With the right structures in place, managing a crypto SMSF can be straightforward. Coinstash is purpose-built for SMSFs and supported by a team with deep expertise in both digital assets and compliance, helping trustees stay on track while focusing on their retirement goals.

If you are ready to set up a crypto SMSF account, the Coinstash team can guide you through the process with personalised 1-to-1 onboarding consultations. Click here to book a consult.

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