Mr Lehman and Mr Rutter explain how the unique asset class can help diversify a portfolio, as well as the factors SMSF trustees need to consider when selecting a crypto exchange, such as fees, available coins, and minimum trade requirements.
The pair also cover the way SMSF trustees can purchase cryptocurrencies through their SMSF, and how to ensure the assets are safeguarded.
Finally, Mr Lehman and Mr Rutter highlight the importance of managed custody and detail Digital Surge’s Corporate Affiliate Program and Client Adviser Portal.
Crypto currency will never be suitable for an SMSF until crypto exchanges/custodians are audited annually, whether that be voluntarily or compulsory. It’s hard to believe that in our over-regulated society, nothing has been done to regulate these investment providers. This is especially so given the frauds and collapses seen internationally.
SMSF trustees can’t expect their fund auditor to have to carry the can for their folly, with nebulous block chain/wallet information as so called confirmation. No one really knows if these investments exist within crypto custodians and exchanges. In the end, their reports are “just a piece of paper”.
Crypto exchanges need to voluntarily arrange to be audited and provide that audit report to each crypto investor annually. Otherwise, the Government needs to step in and regulate them with annual compulsory audit, without delay.