Crypto Curious: Using an SMSF to Invest in Crypto
In this episode of Crypto Curious your hosts Tracey, Blake, and Craig discuss self-managed superannuation funds (SMSFs) with special guest John Collignon of C2 Super. They talk about how superannuation funds in Australia have changed over the years and the various schemes that are available today.
John explains the different types of super funds that Australians have access to, including Approved Deposit Funds (ADF), Australian Prudential Regulation Authority (APRA) funds, and Australian Taxation Office (ATO) funds. ATO-regulated funds allow Australians to manage their own SMSF, where you become the sole member and trustee. This gives the investor an almost unlimited selection of assets and options to invest in, including property, art, collectibles, cattle, and cryptocurrency.
However, there are rules that must be followed and you need to satisfy a sole purpose test, which means you can't invest in anything that isn't directly related to your retirement. For example, you can't use the fund to purchase a holiday home or lend money to yourself or a related party. Running an SMSF also attracts a lot of administrative responsibility that you will need to be prepared to take on, such as reporting and compliance procedures.
While an SMSF does give you freedom of choice when it comes to your investment strategy, you do need to practice a level of responsibility. You could fall foul of not being a responsible trustee if you take unnecessary risks such as putting all your money on a 100x leverage position.
Listen to the full episode to learn about all the benefits you can gain from investing in cryptocurrency and other assets via an SMSF.