Buy Bitcoin and cryptocurrency in your SMSF

A Self-Managed Super Fund (SMSF) is a type of retirement fund in Australia that allows individuals to take full control of their superannuation investments, including the option to include cryptocurrencies in their portfolio. Managed by trustees for their own benefit, SMSFs must strictly comply with superannuation and tax laws as outlined by the Australian Taxation Office (ATO). For more details, visit the ATO website and consult with a financial advisor or accountant before making any investment decisions. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf

Bitcoin is a decentralized digital currency that operates independently of central authorities such as banks or governments. It relies on blockchain technology, a secure and transparent ledger that records every transaction in a tamper-proof and verifiable way. Often referred to as "digital gold," Bitcoin is highly valued for its scarcity—only 21 million bitcoins will ever be created, making it immune to inflationary practices like money printing. This fixed supply, combined with its robust security and decentralized nature, has positioned Bitcoin as a revolutionary financial asset.

Cryptocurrency is a form of digital or virtual currency that uses cryptography for security, making it nearly impossible to counterfeit or double-spend. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks based on blockchain technology. This ensures transparency, security, and independence from central authorities like banks. Cryptocurrencies such as Bitcoin, Ethereum, and others are used for various purposes, including online payments, investments, and as a store of value in the digital economy.

The ATO have released guidelines in relation to investing in cryptocurrency for your SMSF. We suggest that you read and understand these guidelines prior to investing in cryptocurrency for your SMSF. These ATO guidelines can be found here https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/in-detail/smsf-investing/smsf-investing-in-crypto-assets

Yes, when establishing a cryptocurrency account Eagle Fund we will set up an account in the SMSF name and not in the personal names of the Trustees.

Under superannuation laws, trustees and members must ensure that SMSF assets are kept distinct from personal assets. Cryptocurrency investments owned by an SMSF must be managed and stored separately from any personal or business investments of its trustees and members. This requires the SMSF to establish clear ownership of the cryptocurrency, including maintaining a dedicated cryptocurrency account or wallet exclusively for the SMSF. Trustees must also be able to provide evidence of this separation to comply with legal requirements.

Yes, Eagle Fund requires you to complete KYC/AML

KYC (Know Your Customer) and AML (Anti-Money Laundering) are regulatory processes designed to prevent financial crimes such as money laundering, fraud, and terrorist financing.

• KYC involves verifying the identity of customers by collecting and confirming personal information, such as name, address, and government-issued ID.

• AML encompasses a broader set of measures and procedures that financial institutions and businesses implement to detect, prevent, and report suspicious activities.
  

These safeguards help ensure compliance with laws and build trust in financial systems, including cryptocurrency exchanges and investment platforms.

Firstly book in an intro meeting with one of the Eagle Fund experts. If you decide to go ahead you will firstly need to complete KYC/AML using standard personal verification documents. Next we will need

• SMSF name

• SMSF trust deed document

• SMSF ABN

• SMSF trustee information, including ACN and director/beneficial owner information if a corporate trustee

OTC (Over-The-Counter) refers to trading and purchasing crypto directly through the Eagle Fund Trading Desk. Our OTC services allow buyers and sellers to trade large amounts of digital assets privately and securely, through our dedicated OTC platform. OTC trading is popular for high-value transactions because it minimises price impact on the open market, offers greater flexibility, and provides personalised service that is safe and secure.

The sole purpose test is a critical legislative requirement for all SMSFs, ensuring that fund assets are used exclusively to provide retirement benefits to members or death benefits to their beneficiaries. This includes cryptocurrency investments held within the SMSF. For example, if your SMSF holds cryptocurrency, it cannot be used for personal transactions, such as making purchases or transfers for personal benefit. All investments must be strictly for the purpose of growing the fund to support retirement outcomes, in compliance with superannuation laws.