Australia warns retirees over heavily investing in cryptocurrency self-managed pensions
Australia warns retirees over heavily investing in cryptocurrency self-managed pensions
The Australian Tax Office (ATO) has issued 18,000 warning letters to investors of self-managed super funds (SMSFs) for concentrating the majority of their retirement savings in cryptocurrencies, according to local news outlet Micky.
In its letter, the office said that retirees have a “duty to comply with legal requirements to adopt investment strategies avoiding risky investments.”
Non-compliance could see them face a fine of up to AU$2,400 (US$2,852). As per the report, investing more than 90% of retirement funds on a single class, such as property and cryptocurrency, is considered illegal under Australian law.
SMSFs are a type of retirement accounts that are handled by individuals instead of a professional fund manager.
“We have already seen two instances of SMSFs losing significant amounts of their retirement savings through investment in cryptocurrency,” an office’s spokesperson told the news site.
The Australian Securities and Investments Commission also particularly warned SMSF holders of the risks in investing in crypto.
Read more @The News Asia
