Change on the cards for SMSF crypto audits as compliance expectations tighten
Auditors are increasingly qualifying SMSF audits where cryptocurrency records are incomplete or exchanges cannot be independently verified, as scrutiny around digital assets continues to intensify.
Proper documentation is now critical for trustees investing in crypto — including proof of reserves and evidence of internal systems and controls with the steady rise in SMSFs allocating to cryptocurrency, particularly among newly established funds.
Around 70% of recently established SMSFs have or intend to invest in cryptocurrency. However, from a compliance and audit perspective, there is still no clear guidance on what auditors can accept as evidence of existence.
Historically, auditors accepted screenshots of wallet balances or year-end exchange statements as sufficient proof. That approach is no longer considered adequate.
While some Australian exchanges publish proof of reserves, this is not currently mandatory, and many offshore platforms provide little or no transparency.
As a result, auditors are increasingly requesting GS007 reports, often supported by ASAE 3402 or ISAE 3402 assurance frameworks. These reports help demonstrate that exchanges have appropriate internal systems and controls in place.
However, many Australian exchanges have not engaged auditors to produce these reports, largely due to competing priorities including licensing requirements and preparation for incoming regulation.
If auditors can’t verify reserves or confirm controls, they may have no choice but to qualify the audit. For auditors unfamiliar with crypto, the risk profile alone can be enough to trigger a qualified opinion — it’s seen as a high-risk asset class that’s vulnerable to hacking.
Looking ahead, expect significant changes to crypto compliance for SMSFs.
The ATO is likely to gain clearer visibility over SMSF crypto investment trends as uptake accelerates, noting cryptocurrency is currently the fastest-growing asset class within the SMSF sector.
In parallel, upcoming financial licensing reforms will require all crypto providers and exchanges operating in Australia to hold appropriate licences and comply with financial services laws — including mandatory proof of reserves.
Once these rules take effect from 1 July 2026, exchanges will have no choice but to demonstrate reserves and meet Australian compliance standards.
For trustees, the message is clear: crypto investing through SMSFs is entering a much more regulated environment, and audit-ready documentation will be essential.
Speak with Omnis’ SMSF Specialist Peta Berry for tailored guidance on navigating SMSF audit changes — book a confidential review today.
Cambourne, K. (2026, February 11). Change on the cards in auditing crypto. SMSF Adviser. https://www.smsfadviser.com/change-on-the-cards-in-auditing-crypto/
