Crypto SMSF Guide 2025

Want to use your super to invest in crypto and save on tax? This guide breaks down exactly how to do it through a self managed super fund (SMSF). We'll cover setup, tax savings, ATO rules, and the best platforms to use in 2025.

If you’ve been thinking about adding crypto to your self managed super fund, you’re not alone. According to the latest ATO data, more than $1.6 billion in cryptocurrency has now been added to SMSFs as of 2025. And it’s never been easier to get started, with many of Australia’s leading crypto platforms offering SMSF products and onboarding help.

But how do you actually go about investing in crypto through your SMSF, and what are the rules you need to follow? This guide explains it all—clearly, simply and in line with the ATO’s May 2025 guidance.

What is a Crypto SMSF?

Self managed super funds (SMSFs) have long given Australians more control over how they invest for retirement. But what happens when you bring crypto into the mix? Quite a bit, actually.

A workaround to retail super limitations

A crypto SMSF is simply a self managed super fund that includes cryptocurrency in its investment portfolio. Instead of relying on a retail or industry super fund, you manage the investments yourself. And yes, that can include Bitcoin, Ethereum and other digital assets.

Importantly, most traditional superannuation funds, like AustralianSuper, do not currently support direct investment in crypto assets such as Ethereum or tokenised Bitcoin (for example EBTC). However, in a notable exception, AMP made headlines in 2024 by investing $27 million in Bitcoin, becoming the first major superannuation fund to take a stake in the asset class.

For now, though, SMSFs remain the main pathway for Australians to gain compliant crypto exposure within their retirement savings.

How exchanges fit into the mix

Exchanges come into play because they provide the trading infrastructure needed to actually buy and sell crypto assets. While exchanges like Kraken, Swyftx and Cointree do not offer dedicated SMSF accounts, they allow business accounts that can be configured to meet SMSF requirements. Coinstash is an Australian platform that cater specifically to SMSF investors. It offers access to Australia's largest range of cryptocurrencies, EOFY reports that SMSF auditors love, and a dedicated SMSF support team.

Whichever exchange you decide to use, you or your SMSF administrator must ensure that accounts are opened in the name of the SMSF trustee, follow ATO separation rules, and support the necessary record keeping.

Working with administrators

Some SMSF platforms and administrators in Australia integrate with crypto exchanges to streamline onboarding, tracking and reporting. The exchange facilitates access to the market, but it is your responsibility (or your administrator’s) to ensure all activity is compliant under the Superannuation Industry (Supervision) Act 1993 and ATO rules.

Why use an SMSF to invest in crypto

This is the big one. The main reason Australians are turning to crypto SMSFs is to legally avoid paying excessive tax on their crypto gains.

The tax advantage

Ordinary crypto investments outside super are taxed at your marginal income rate. For high income earners, that could mean paying up to 47 percent tax on gains. Inside an SMSF, income is generally taxed at 15 percent and capital gains at just 10 percent if the asset is held for more than 12 months. Even better, once you move into the retirement phase, you may pay no tax at all. That difference in tax rate could mean keeping more than twice as much of your crypto profits over time.

Why that matters now

After the ATO’s recent crackdowns on crypto traders and expanded data matching capabilities, many investors are looking for legally sound ways to reduce their tax burden. With increased oversight and more complex reporting requirements, a crypto SMSF offers a cleaner, more structured way to stay compliant while building long term wealth. For more on how the ATO is tracking crypto, read our guide to ATO cryptocurrency data collection.

Long term thinking

Superannuation is, by design, a long term game. That aligns well with a long term crypto investment thesis. If you're planning to hold and build crypto wealth over the next 10 or 20 years, doing it in a low tax environment just makes sense. A crypto SMSF saves tax and helps you keep more of what you earn.

Who should consider a crypto SMSF

You do not need to be a financial expert to run a crypto SMSF, but it helps to be organised, patient and open to learning.

How to set up a crypto SMSF

Setting up a crypto SMSF involves the same process as setting up any SMSF, with a few extra things to consider. Here's a summary taken from the the ATO's official guidance as of May 2025.

Step by step overview

1. Create your SMSF
This involves setting up a trust, choosing trustees, creating a trust deed and getting an ABN and TFN. You can do this through a licensed provider or with the help of a specialist accountant.

2. Roll over your existing super
Transfer your super from your current fund into your SMSF’s bank account.

3. Develop an investment strategy
You must document your plan to invest in crypto and explain how it aligns with your fund’s objectives and risk profile.

4. Open accounts in the name of your SMSF
You will need an Australian bank account and a crypto exchange account that allows SMSF investing.

Before signing up, confirm with your SMSF administrator or accountant that your exchange account meets ATO separation and compliance rules. ATO guidance makes it clear that trustees must be able to demonstrate control, ownership and separation of fund assets at all times.

5. Set up secure crypto storage
The ATO expects digital assets to be held separately from personal holdings. This is particularly important for crypto, because being in custody of digital assets essentially means controlling the private key to a wallet.

Each wallet is identified by a public key (wallet address), but ownership is proven by control of the private key. The SMSF fund must have clear, documented ownership of wallets, with no overlap with personal wallets used by members or trustees.

There are two main ways to manage this:

• Trustee-managed wallets: If the trustee holds the private keys personally, all activity must be documented in their capacity as trustee, not as an individual. The wallet must be used exclusively for SMSF purposes, and private keys should never be shared.

• Third-party custodians: Many crypto exchanges, such as CoinSpot, allow SMSF accounts to be set up in the name of the fund with control accessed through conventional means like email and password. This makes buying, selling and record keeping easier but means the exchange controls the private keys. This carries risks if the platform is compromised.

Whichever route you choose, you must be able to demonstrate clear separation of assets and complete transaction records for audit purposes.

Where can I invest in crypto with an SMSF?

Find out about the best crypto SMSFs including Cointash, Kraken, Digital Surge, CoinJar, CoinSpot, Swyftx, and more.

ATO rules for crypto SMSFs

• Crypto must be owned and held in the name of the SMSF.

• It must not be mixed with personal assets.

• You must keep accurate records for each transaction.

• Your investment must comply with the sole purpose test.

• You must get an independent audit every year.

• Crypto must be valued at market rates as of 30 June each year.

If you are using staking or DeFi, there are extra layers of complexity. Make sure these activities are covered in your investment strategy and that you can report them properly.

How crypto is taxed in a crypto SMSF

The tax treatment of crypto in an SMSF depends on what you are doing. Here is what to keep in mind:

Income tax inside an SMSF

• Regular income like staking rewards or airdrops is taxed at 15 percent

• Capital gains are taxed at 15 percent, or 10 percent if the asset is held for more than 12 months

• In the retirement phase, tax may reduce to zero, depending on caps and conditions

When tax applies

• Swapping one crypto for another, like BTC for ETH, triggers a CGT event.

• Using crypto to buy goods or services is a disposal event, unless it qualifies as a personal use asset.

• Receiving tokens through airdrops or forks may be treated as income.

• Token upgrades or migrations can also trigger CGT depending on how they work

• Participating in DeFi, like providing liquidity on Aave or Uniswap may lead to assessable income and capital gains depending on the nature of the activity

For more detail, read our crypto tax guide for Australia and our piece on how to legally reduce crypto tax. Traders should also check out our guide to crypto tax rules for traders.

Using Koinly with a crypto SMSF

Koinly can help you, or your accountant, manage your SMSF crypto investments. Because your SMSF must stay separate from your personal accounts, you will need to set up a new Koinly account just for the SMSF.

Once you have done that, connect the exchanges you use via API or upload CSV files. Koinly will track and calculate your investments for you, including cost basis, capital gains and losses and the fair market value of any income in AUD.

You will be able to access reports tailored for your SMSF:

• Complete Tax Report

• Capital Gains Report

• Income Report

• Other Gains Report

• Expenses Report

• End Of Year Holdings Report

• Highest Balance Report

• Buy Sell Report

• Transaction History

When tax time rolls around, upgrade to a paid plan to download your reports, or invite your accountant to your Koinly account so they can handle it for you.