Avoid These 8 Common SMSF Crypto Mistakes

Yes, you can buy crypto with your SMSF, but do it wrong, and the ATO could come knocking.

Cryptocurrency and self-managed super funds, a powerful combination, no doubt. But this power comes with sharp edges. Make the wrong move, even unknowingly, and your fund could end up on the wrong side of compliance.

So before you dive into Bitcoin, ETH, or any other crypto currencies with your SMSF, read this, carefully. These are the most common crypto SMSF mistakes we see, and trust us, they’re easier to avoid than to fix later.

 1. Don’t Buy Crypto If Your Trust Deed Doesn’t Allow It

Your SMSF trust deed must explicitly permit cryptocurrency as an asset class. If it doesn’t, any crypto purchases, even small ones, could breach your fund’s rules.

2. Don’t Buy Crypto If It’s Not in Your Investment Strategy

Your investment strategy should mention crypto specifically, not just “growth assets” or “alternative investments.” It needs to show that you’ve considered risk, liquidity, and diversification.

3. Never Borrow Money to Trade Crypto

SMSFs are not allowed to borrow money to invest in crypto.

4. Don’t Open Exchange Accounts in Your Personal Name

This is a common beginner mistake. All crypto exchange accounts must be in the name of your SMSF, not your own.

Your fund must remain separate from your personal finances, always.

5. Don’t Buy Crypto from Related Parties

You can’t transfer crypto you already own into your SMSF. The ATO prohibits buying crypto from yourself, family, or related entities.

6. Never Mix SMSF Coins with Personal Coins

This one gets people in trouble fast.

7. Don’t Constantly Move Coins Between Wallets

Frequent wallet movements make record-keeping difficult and can trigger audit issues.

8. Don’t Skip on Record-Keeping

You must keep clear records of every crypto transaction.

Want Peace of Mind?

We help crypto investors set up SMSFs the right way, with clean structure, correct documentation, and support for wallets, exchanges, and ATO compliance.

To find out more, please visit our crypto SMSF page.

📞 Have questions? Claim your free 15 min no obligation Crypto SMSF consultation, valued at $299. We’ll walk you through what’s allowed, what’s not, and how to stay on the right side of the rules.