Binance founder CZ proposes a crypto “will function” to allow users to securely pass on digital assets to heirs, enhancing long-term asset management options
Changpeng Zhao, the founder of Binance, stated that crypto platforms must prepare for the unavoidable by allowing users to transfer digital assets after their deaths.
Changpeng “CZ” Zhao, the founder and former CEO of Binance, requested that crypto platforms implement a “will function” to facilitate the distribution of digital assets in the event of their demise.
The communication coincides with the June 12 update by Binance, which introduced a new emergency contact and inheritance feature. This feature enables users to designate heirs who can claim their crypto assets in the event of their death.
The update lets the platform notify a user’s emergency contact during prolonged inactivity. That contact may initiate an inheritance claim.
The crypto community has emphasized the importance of the will function. CryptobraveHQ, an X user, praised Binance’s new emergency feature, describing it as “really thoughtful.”
A user asserted that over $1 billion in crypto assets remain unclaimed annually due to untimely deaths and a lack of appropriate mechanisms.
The feature was also well-received by other community members, who, however, expressed reservations regarding its constraints. According to Uniswap12, a user, Binance accounts contain tokenized wealth and intangible value, including articles, social presence, and community influence.
“This is even more significant to me than cash assets,” he stated, suggesting that comprehensive accounts be transferred to heirs like the way phone numbers can be passed down.
In Web3, others reiterated the necessity of proper inheritance planning. Ghazi, a user of X, referred to it as “a reality we can’t ignore.” At the same time, Binn commended the update as a step toward true decentralization, asserting that users will feel more secure knowing their digital wealth can be passed on.
The Necessity of Cryptocurrency Will
Irina Heaver, a lawyer based in Dubai, stated to Cointelegraph in 2023 that numerous families are unable to reclaim assets following the demise of a loved one. She encouraged holders to converse regarding their crypto and formally incorporate it into their estate planning.
Heaver stated that most crypto investors are between the ages of 27 and 42, a demographic unlikely to prioritize end-of-life financial arrangements. Nevertheless, she said that the utmost action that investors should take is to draft a will.
Hennessy stated that wills must not only mention the existence of digital assets but also include detailed technical instructions on accessing them.
