Investing in cryptocurrencies, is not new to Self-Managed Super Funds (SMSFs). According to ATO figures SMSFs have been investing in Bitcoin and cryptocurrencies since 2013. Increased regulation of this space has put Binance; one of the largest cryptocurrency exchanges in the world, in the firing line of ASIC. Binance is arguably the largest cryptocurrency exchange in the world, so let us look at how these actions, might affect SMSF members.
Understanding the Current Issues with Binance
In recent times, Binance has found itself in troubled waters due to several problems.
Deposits and withdrawal issues
Members have faced difficulties with depositing and withdrawing assets from their accounts on Binance, causing panic and uncertainty. For most SMSF members, having their valuable Bitcoin and other crypto coins stuck in an exchange wallet, is alarming. This is mainly due to this exchanges market practices and disclosures, which has resulted in Binance’s regulatory issues. Further Westpac has blocked Binances ability to deposit AUD via PayID or direct transfers, limiting new deposits to only credit cards. As you may be aware, SMSF are not allowed to have any debit or credit cards linked to their accounts due to super laws that limit the withdrawal of money, unless the fund is in pension phase.
Moreover, Binance has faced regulatory scrutiny from multiple jurisdictions worldwide. Undoubtedly, this has caused a great sense of unease with a lot of Australian SMSF investors, who have trusted Binance with their, retirement savings.
Impact of Binance Issues on SMSF Members
These issues could potentially affect SMSF members in several ways.
Risks to SMSF assets
The inability to move assets in and out of Binance could mean that SMSFs are unable to effectively manage their funds, leading to financial risk. No one wants to be in a situation where their control over their SMSF bitcoin and crypto investments are compromised
Potential compliance issues
Furthermore, SMSFs may face compliance issues, such as breaches of super laws, due to these problems, which could have serious implications. No one wants to get tangled in a web of legal complexities, especially in a SMSF
Solutions Offered by My SMSF
My SMSF is here to assist you in navigating the Binance exchange SMSF issues. We have many current clients who compliantly hold Bitcoin on the Binance exchange.
Acceptance of Binance-exposed SMSFs
Regardless of the issues with Binance, My SMSF still welcomes all SMSFs that hold accounts with the exchange. We have successfully fixed compliance issues with Binance and other exchange accounts in the past and My SMSF is prepared to assist SMSF members to remain compliant with super laws.
Fixing compliance issues for a minimal fee
Beyond acceptance, My SMSF also helps rectify any compliance issues for a small fee, ensuring your SMSF is compliant with super laws and back on track.
The Role of My SMSF in Annual Tax and Audit Obligations
My SMSF has been providing annual tax and audit administration services to SMSFs for cryptocurrency SMSFs over seven ( 7) years. Our SMSF Bronze care fee is $1,100 per annum.
Compliance with tax obligations
With over thirteen ( 13) years of knowledge and experience with SMSF Administration and seven years with Cyptocurrencies, we will ensure that your SMSF is compliant with all the relevant tax and super laws.
1. What are the current issues with Binance? Binance is currently facing issues related to deposits, withdrawals, and regulatory scrutiny.
2. How might these Binance issues impact SMSF members? These issues may pose risks to the assets of SMSF members and potentially lead to compliance issues and restrictions on selling cryptocurrencies held with Binance and moving it back into the SMSF cash account.
3. What solutions does My SMSF offer for SMSFs exposed to Binance? My SMSF accepts all SMSFs that hold Binance exchange accounts, and offers services to rectify any compliance issues for a small fee.
4. How does My SMSF help with annual tax and audit obligations? My SMSF ensures compliance with tax obligations and offers regular auditing and monitoring services to ensure the financial health of the fund.
5. What is the future of SMSFs, Cryptocurrency, and Binance? Despite uncertainties and challenges, there are still opportunities in the landscape of SMSFs and cryptocurrency. With the right guidance, these challenges can be turned into opportunities.