Australians lose over $400 million after depositing money into Crypto retirement fund

Australian investors are likely to see their retirement fund investments go bust after the funds lost about AUD 600 million, or around USD 404 million. Self-managed super funds (SMSFs) are different from traditional retirement funds in that their members are responsible for managing their own savings, which allows them more freedom in investing. These funds have fewer restrictions and operate outside the jurisdiction of several regulatory agencies.

According to Reuters, these funds represent roughly one in four of Australia’s overall retirement savings, with a value of around AUD 880 billion, or approximately USD 593 billion. If Bitcoin’s value decreases by an average of 40% from its peak in 2021, it could lead to a loss of nearly AUD 600 million for SMSF crypto investments in Australia.

Regulatory agencies have stated that this is not their concern if these funds are legal. Australia appears relatively relaxed when it comes to SMSF operations, while the United States and the United Kingdom have similar programs but little access to cryptocurrencies, with the latter prohibiting direct investment in them.

However, former SMSF Association CEO John Maroney stated, “The regulator is not responsible for managing people’s money, but it is responsible for making sure that the industry is efficient, competitive and consumers are protected.”

The incident has raised questions about the effectiveness of SMSFs, as it puts a lot of responsibility on individual investors to manage their retirement funds. The funds’ losses could significantly impact the future of the individuals who invested in them, indicating the need for tighter regulatory measures to protect investors.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like