tl;dr
Binance founder Changpeng Zhao (CZ) has called for crypto platforms to implement a "will function" to enable the inheritance of digital assets. CZ also urged regulators to permit minors to hold crypto accounts that can receive payments but not trade, allowing children to inherit assets legally. The ...
Binance founder Changpeng Zhao (CZ) is championing the introduction of a "will function" across crypto platforms to ensure digital assets can be reliably inherited. He also proposes allowing minors to hold crypto accounts that receive payments but restrict trading, facilitating legal inheritance and safeguarding assets for younger heirs.
Currently, over $1 billion in crypto assets shift annually to centralized exchanges due to accidental deaths and a lack of inheritance planning. Many users fail to share account details with their families, resulting in dormant accounts and lost assets.
In response, Binance launched an "emergency contacts and inheritance heir" feature, enabling users to designate beneficiaries who can claim assets following prolonged inactivity or death. This allows for a more seamless transfer of crypto holdings to rightful heirs without cumbersome legal hurdles.
Competitors handle crypto inheritance differently: Coinbase relies on manual verification of legal documents like wills and death certificates, while BitGo employs multi-signature wallets combined with third-party legal arrangements to manage asset transfer securely.
Binance also leads in transparency, releasing monthly Proof of Reserves reports that consistently show reserve coverage above 100%, enhancing trust in its custody capabilities. CZ emphasizes that inheritance is a sensitive yet essential feature that everyone holding crypto assets will eventually need.