Can my SMSF invest in Crypto via BTC Markets

BTC Markets is an Australian-based cryptocurrency exchange that has been operating since 2013 and has over 35 tradable cryptocurrencies. It is regulated by AUSTRAC and holds an Australian Financial Services License (AFSL), regulated by ASIC. BTC Markets obtained its AFSL through its sister company, BTCM Payments, back in 2022. Regulatory oversight provides consumer protection against financial fraud, scams and money laundering.

A self-managed super fund (SMSF) can trade cryptocurrency through BTC Markets. However, all investments made by an SMSF must comply with the Superannuation Industry (Supervision) Act 1993 (SIS) and its Regulations (SISR). It is crucial to ensure crypto investments are:

• secure
• be part of the SMSF’s investment strategy and allowed for in its trust deed
• owned by the SMSF with the title in the SMSF’s name
• paid for by the SMSF
• the SMSF assets are not mixed with the members’ or the trustee’s personal crypto assets
• not acquired from a member or another related party to the fund
• can be valued at market value with acceptable, supportable evidence
• the amount of cryptocurrency held by the fund can be determined
• is acquired for the sole purpose of providing for the members’ retirement

For more information about how Crypto works within an SMSF checkout our dedicated page explaining the process in detail:

SMSF Cryptocurrency

Does BTC Markets have dedicated SMSF accounts?

Yes, they do have SMSF-dedicated accounts, which are essential for audit purposes to ensure the separation of SMSF assets from members’ or the trustee’s personal assets. BTC markets have a simple deposit/withdrawal process suitable for SMSF trustees.

What security does BTC Markets offer?

Both SMSF cold wallets (offline) and hot wallets (online) are used to manage crypto assets. Cold wallet storage is off-site, distributed across multiple locations, and physically secured. The fund can buy and sell digital assets on the exchange platform, but BTC markets recommend that clients manage and secure their own crypto assets by withdrawing to a cold wallet after purchase. Two-factor authentication (2FA) is used to access SMSF accounts and provides an additional layer of security.

What reports do BTC Markets provide SMSF auditors and accountants?

Wallet balance and transaction history reports are provided in PDF or CSV format, enabling transaction details to be imported into specialist SMSF software. End-of-financial-year (EOFY) market prices are available on the BTC Markets website. This streamlines the preparation of the fund’s financial statements and allows auditors to check for related-party transactions and any unusual activity. Ownership of crypto assets, along with confirmation of the number held and valuation as at 30 June, is available in these reports.

Do you need a new SMSF set up?

If you want to invest in cryptocurrency through an SMSF but don’t have one, we can help you set up an SMSF. We do not provide advice on the suitability of an SMSF, but we can assist you with the paperwork.

Your SMSF bank account

Your SMSF requires a transactional bank account for its normal operations. Whilst the Big Four Banks offer SMSF accounts, they may not support SMSF crypto trading due to rising scams and financial fraud, or may limit transactions.

The ANZ V2 Plus account is considered one of the most crypto-friendly accounts which we will happily setup for you as part of the SMSF establishment process. This account is established through intermediaries such as financial advisors, accountants or SMSF administrators, not directly by the SMSF. Other banks that some SMSFs have successfully used include Australia Bank, St George, NAB, Bendigo Bank and Heritage Bank. It is crucial to confirm with the SMSF bank whether they will allow crypto transactions, as bank policies are constantly evolving, and SMSF-specific crypto payment guidance is not always publicly available.

It is crucial that the title of your SMSF bank account match the title of your crypto exchange account.

Steps to start trading with BTC Markets for an SMSF

Summary of actions to open an account with BTC Markets:

• Sign up and create your account
• Verify your account
• Fund your account
• Make your first trade

Step 1:      Sign up and create your account       

Enter your email address, and a code will be sent to you

• Customer Type: Select Self Managed Super Fund (SMSF)
• Password: Create a password

Step 2:      Verify your identity

1. Provide entity details – name and ABN for your SMSF
2. Provide entity documents – select “Trust Agreement”, upload a copy of your SMSF trust deed
3. Provide associated parties – Add Trustee select “Add Individual” or “Add company” (our SMSFs have an SMSF company trustee)

• Select the role “Trustee” (assuming company trustee), add in the company name and A.C.N
• Add in UBO (Ultimate Beneficial Owner) – shareholders of the company trustee owning more than 25%

Add in beneficiaries – these are the SMSF members

4. Complete questionnaire -respond to queries as appropriate
5. Enter your phone number to obtain a verification code

The verification process for each individual and the company trustee can be done by selecting:

“Verify now”

“Send to email”

 ID Verification

• Choose to enter details of your driver’s license (must be a photo ID) or passport, which must be currently valid
• Refer to the instructions via BTC Markets to complete your verification

Step 3:      Fund your account

An SMSF will not have a Visa, Mastercard or a debit card.

Deposits can generally be made from your SMSF bank account using PayID (Osko), or via a direct transfer from the fund’s bank account or another external crypto wallet.

“How to fund your account”

Step 4:      Start Trading

After successful verification, your SMSF can start trading (at the bottom of the page).

Other Exchanges

SMSF Australia does not require clients to use any particular crypto exchange, platform or broker. We are happy to support any AUSTRAC registered exchange providing quality services to our SMSF clients and are happy to offer guidelines on utilising different providers. Other Crypto exchanges which we have clients use on a regular basis include UpTrade, Digital Surge and many more.