- CZ Urges Crypto Platforms to Add ‘Will Function’ for Asset Transfer After Death.
- Unlike banks, crypto platforms generally lack formal processes for inheritance.
- Emergency contacts are notified and must submit verification like a death certificate.
In a move that highlights the growing need for secure digital legacy planning, Changpeng Zhao, widely known as CZ and the founder of Binance, has called on crypto platforms to implement a “will function.” This feature would allow users to set up a system where their digital assets can be transferred to designated beneficiaries in the event of their death. As the cryptocurrency space continues to grow and mature, the need to address asset inheritance is becoming more urgent than ever.
Why Crypto Needs Inheritance Solutions
Cryptocurrencies are designed to be decentralized and secure, which often means that only the asset owner has access to their funds through private keys or exchange accounts. While this gives users full control over their assets, it also presents a serious risk. If a user dies without sharing access to their crypto wallets or providing legal instructions, the funds could be lost forever. Unlike traditional banks that have legal procedures for transferring funds to heirs, most crypto platforms lack formal inheritance options.
This is the gap CZ wants to close. In his recent statement, he emphasized the importance of planning for the future and ensuring that digital wealth doesn’t disappear when someone passes away. His suggestion is simple but powerful: let users decide, in advance, who should receive their crypto and how much, in a secure and verifiable way.
Binance Leads the Way With an Inheritance Feature
Binance, the world’s largest cryptocurrency exchange, has already taken steps to address this issue. The company recently introduced an inheritance service that allows users to assign a trusted emergency contact who can claim the account in case of prolonged inactivity or death. After a set period of time with no activity, the emergency contact is notified and can begin the verification process, which includes submitting a death certificate and going through security checks. Once verified, the digital assets are transferred to the chosen beneficiary.
This feature is not just a technical update. It reflects a growing awareness within the crypto industry that users need better tools to manage their financial futures, including after they’re gone. It also helps legitimize crypto as a long-term asset class by aligning it more closely with the estate planning practices already common in traditional finance.
Growing Demand for Digital Estate Planning
The idea of digital inheritance isn’t new, but it’s gaining traction as more people invest in crypto and treat it as a part of their overall financial portfolio. Platforms like Coinbase and Kraken have also started offering limited support for estate planning, but many still lag behind. Without clear systems in place, surviving family members are often left in a legal and technical maze, trying to gain access to funds they may not even know exist.
By calling for a standard “will function,” CZ is encouraging the industry to adopt a more user-friendly and responsible approach to wealth management. This could involve features like selecting beneficiaries, setting distribution percentages, and enabling time-based triggers that release funds only after certain conditions are met. All of this would need to be done securely, with strong identity verification and fraud prevention systems in place.
A Step Toward Responsible Crypto Adoption
CZ’s suggestion comes at a time when the crypto industry is under pressure to build more trust with users and regulators. By addressing real-world concerns like asset inheritance, platforms can show they’re committed to protecting users beyond just trading and investments. This move could also help onboard more conservative or risk-averse individuals who might otherwise be hesitant to enter the crypto space due to fears about what happens to their money if something goes wrong.
Adding a will function would also support long-term crypto holders, many of whom see their digital assets as generational wealth. For these users, estate planning isn’t just a convenience—it’s a necessity.
Conclusion
As the crypto world matures, so must the tools that support users in managing their assets responsibly. CZ’s call for a will function is a step in the right direction. It reflects not only a technical upgrade but a moral one as well, urging platforms to protect users and their families in life and beyond.
Crypto inheritance is becoming a major issue. CZ wants all platforms to make it easier for families to access digital assets. Binance is already setting an example others may soon follow.
