- Binance lets users name heirs to receive crypto assets after the account holder’s death.
- CZ urges will feature for all platforms and calls on regulators to allow minor account access.
- Over $1 billion in crypto is lost yearly due to deaths without inheritance planning.
Binance has unveiled an inheritance tool that allows users to name beneficiaries for their crypto assets in the event of death. This June 12 upgrade enables a user’s emergency contact to be notified after an extended period of inactivity on the platform. The emergency contact may then initiate a claim process to access the assets, which includes identity verification and document submission.
Following Binance’s rollout of its inheritance feature, CZ urged all crypto platforms to implement similar ‘will functions’ for asset succession. “This is a topic people avoid, but the fact is, humans cannot live forever,” Zhao stated on X. He added that each platform should let users predefine heirs, with digital assets distributed according to the assigned share. Moreover, CZ emphasized that minors should be allowed to hold accounts, even with trading restrictions, to allow inheritance access.
Community Reaction and Calls for Industry-Wide Action
Binance’s move received praise and concern in equal measure, as users welcomed the update while calling for broader improvements. X user CryptobraveHQ called the feature “really thoughtful” and highlighted that more than $1 billion in crypto remains unclaimed each year.
Uniswap12, an X user, voiced concern that Binance’s feature may fall short in preserving digital identity beyond tokens. He argued for heirs to inherit entire accounts, including social reputation and content, much like passing on a phone number. “This is even more important to me than cash assets,” he said, referencing digital value held in identity and reach.
X user Ghazi called inheritance a “reality we can’t ignore,” while Binn called the feature a step toward decentralization and user security. The call for platforms to do more continued, as users urged a comprehensive approach to Web3 inheritance that goes beyond balances.
Related: SEC Officially Drops Lawsuit Against Binance With Prejudice
Legal Insight and Need for Wider Adoption
Legal experts have long urged crypto holders to include digital assets in their traditional estate plans to prevent asset loss. Most crypto investors are between 27 and 42 years old, a group not known for prioritizing end-of-life plans. Experts suggest formal wills and clear discussions with family to avoid long legal disputes and inaccessible wallets.
Binance’s feature matches with that of crypto asset management and traditional financial practices, offering clarity in the transfer of digital property. Besides Binance, no major exchange has fully committed to a ‘will function’, leaving a critical gap in digital asset planning.
