SMSF Association submission – Regulating Digital Asset Platform Position Paper submission

SMSF Association Submission

The SMSF Association welcomes the opportunity to provide this submission in response to the Government’s proposal paper, Regulating Digital Asset Platforms. The emergence of digital assets has seen some self managed superannuation fund (SMSF) trustees include these assets as part of their investment strategies. We would like to take the opportunity in this submission, to highlight some of the key issues arising from the lack of regulation. We expect that these issues will extend to other investors, not just SMSFs.

Issues arise due to the lack of certainty on the existence, title, and valuation of these investments. These are critical elements not only for the completion of the annual SMSF audit, but also for SMSF investors more generally. Where reports are made available to investors, these are generally in the form of an excel spreadsheet or CSV data file. They lack crucial details, certainty, substance and are unreliable.

Lack of regulation leaves investors exposed to an increased risk of fraud and no avenue to address complaints and inappropriate behaviour or to seek redress. These products are heavily marketed to retail clients who would ordinarily be afforded prescribed protections under the law.

Read the full submission below.

Regulating Digital Asset Platforms (Proposal Paper)

SMSF Association Submission