An administration service provided has highlighted some of the existing issues consumers are facing when looking to use an SMSF to invest in cryptocurrency and, in particular, to establish a new fund for this purpose with the guidance of professional financial advice.
“If you tell your accountant or financial adviser you want to set up an SMSF and invest in crypto, good luck. Financial advisers in Australia aren’t licensed to advise on crypto-[investments] so they will literally [not be able to help you],” SMSFAI founder Olivia Long noted while speaking on a panel at the Australian Crypto Convention held in Sydney over the weekend.
Long pointed out scepticism among the advice industry is exacerbating the situation.
“I still hear advisers calling Bitcoin a Ponzi scheme or they will tell you that you need $500,000 to set up an SMSF,” she revealed.
Further, she clarified the parameters within which accountants are bound as to advising potential investors facing these circumstances.
“Most accountants aren’t licensed to give advice as to whether or not you should establish an SMSF so even if I say ‘no, you shouldn’t [do so]’, it’s giving you advice,” she suggested.
“So there is no financial adviser in Australia that is going to help you [establish an SMSF to invest in crypto, but] if you’re willing to self-educate and willing to manage the crypto-investments yourself, then [you can do it].”
Fellow panellist Cointree chief executive Jess Renden noted the situation may take a positive turn given the current measures being formulated to regulate the digital asset space.
“Regulation is forming in the cryptocurrency industry, I’m sure a lot of you have heard about it this week, so it will actually be really interesting to see as regulation comes in and exchanges get AFSLs (Australian financial services licences) and the respective licensing, whether the [attitude advisers show towards crypto] changes,” Renden said.