Crypto Exchanges Target Australia’s Superannuation System
In an effort to tap into Australia’s AU$4.3 trillion superannuation system, leading cryptocurrency exchanges Coinbase and OKX are both launching products aimed at attracting more investors through self-managed super funds (SMSFs). This initiative reflects the increasing mainstream acceptance of cryptocurrencies; however, it also raises concerns regarding the suitability of such volatile assets for retirement savings.
OKX Takes the Lead
OKX has already launched its SMSF product in June, with CEO Kate Cooper noting that the demand has outstripped expectations. On the other hand, Coinbase is preparing to introduce its SMSF offering shortly, with the Asia-Pacific managing director, John O’Loghlen, revealing that there is a waiting list of over 500 investors eager to access the platform. A recent survey from Coinbase found that 77% of participants plan to invest up to AU$100,000 in digital assets.
Both exchanges intend to provide support for customers looking to establish their SMSF, which includes connecting them with legal and accounting services.
A Growing Segment of Super Funds
Currently, SMSFs account for approximately 25% of the total funds in Australia’s superannuation landscape. Because these funds are managed directly by the account holders, they have more flexibility to invest in higher-risk assets, such as cryptocurrencies. Conventional super funds, in contrast, generally shy away from crypto investments. Notably, AMP is the only Australian superannuation provider that has officially disclosed an investment in cryptocurrencies.
Fabian Bussoletti, a technical manager at the SMSF Association, pointed out that it’s logical to see increasing interest in cryptocurrencies within SMSFs first, with larger funds potentially following this trend over time.
Crypto Investments on the Rise
As per recent data from the Australian Taxation Office (ATO), only about AU$1.7 billion of the capital in SMSFs was invested in cryptocurrencies as of March 2025. While this contributes a relatively small percentage, it represents a significant increase—nearly seven times the amount reported in 2021.
Regulatory Cautions on Crypto Investments
Despite the burgeoning interest in cryptocurrencies among individual investors, regulators such as the Australian Investments and Securities Commission (ASIC) and the ATO have issued warnings about the appropriateness of crypto investments in superannuation funds.
ASIC raised concerns that cryptocurrencies are highly volatile, stressing that over-exposure could lead to substantial losses. They recommend that individuals consult accountants or financial advisors when considering setting up an SMSF for crypto investments.
The ATO echoed these sentiments, cautioning that the inherent volatility of cryptocurrencies may render them unsuitable for retirement savings. They reminded potential SMSF creators that the primary objective of superannuation is to safeguard savings in preparation for a dignified retirement.
Conclusion
As cryptocurrency exchanges like Coinbase and OKX make inroads into Australia’s superannuation market, they face the dual challenge of capturing investor interest while navigating regulatory hurdles. The focus on SMSFs may allow investors greater access to cryptocurrencies, but the existing warnings from regulators underscore the risks involved. As the landscape evolves, it will be crucial for investors to tread carefully, weighing the potential rewards against the inherent risks of this volatile asset class.
