At JustSMSF Audits, we're seeing cryptocurrency becoming an increasingly popular investment choice for SMSFs. If you're just getting started, it's important to ensure your setup aligns with superannuation legislation and your fund remains compliant.
First--and most importantly--select a provider that is SOC 2 Type II compliant (such as Coinstash). These providers issue annual assurance reports confirming that their internal controls are operating effectively. This gives your SMSF auditor a reliable source of audit evidence and can significantly streamline the audit process.
Ensure the account is established in the name of the SMSF--not your personal name. Failing to do so may breach the requirement to keep SMSF assets strictly separate from personal assets. [1]
Before investing, confirm that your SMSF's investment strategy explicitly allows for cryptocurrency. If it's unclear or silent on digital assets, consider updating the strategy with the assistance of a qualified adviser. [2]
Make sure all passwords, private keys, and passphrases are securely stored and accessible to all trustees. In the event of a trustee's death or incapacity, it's critical that the remaining trustee(s) can access the account and manage the investment.
Taking these steps early can help you avoid compliance issues and make the audit process far smoother.
[1] SIS Regulation 4.09A - Operating standard (separation of assets)