CZ Urges All Crypto Exchanges to Add Inheritance Features

Binance's former CEO, Changpeng Zhao (CZ), called for all crypto exchanges to add inheritance features, enabling a user's designated heirs to securely claim their digital assets after death.

The proposal comes seven days after Binance launched its own inheritance functionality on June 12. The new tool allows users to set up emergency contacts who can claim assets after periods of account inactivity. 

Users can specify how long their account must remain inactive before the emergency contact receives an alert. The designated contact can then submit verification documents to claim the assets.

Zhao described the inheritance function as essential for estate planning. He argued that the rapid growth of crypto wealth necessitates better estate planning tools. Without such features, families may lose access to substantial crypto holdings, leading to financial problems and legal disputes.

Every platform should have a ‘will function' so that when someone is no longer around, their assets can be distributed to designated accounts according to specified proportions.

Community Reacts with Widespread 

Community members responded positively to Zhao's proposal. Users on social media called Binance's new feature ‘really thoughtful’ for addressing a well-known problem. Others noted that accounts carry value beyond just the tokens, including social reputation and community connections that heirs might want to inherit.

Support The Long-Standing Challenge of Crypto Inheritance

Zhao's call highlights an issue that has plagued the industry for years. Estate planning for digital assets has developed far more slowly than for traditional finance.

In 2023, Dubai-based lawyer Irina Heaver warned that many families struggle to recover crypto holdings after a user's death, urging investors to include specific instructions for digital assets in their wills. Similarly, financial advisors recommend that crypto holders meticulously document their holdings and provide clear technical details for accessing them, including information on private key storage and password practices. Without proper documentation, crypto assets can remain locked permanently after an owner's death.

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The current situation creates significant risks for crypto holders and their families. Unlike traditional bank accounts, which have established procedures for transferring assets to heirs, crypto exchanges have historically lacked standardized inheritance processes. Each platform operated differently, creating confusion for families trying to recover deceased relatives' assets.

Zhao's call for industry-wide adoption of inheritance features could make procedures more consistent across exchanges. This kind of consistency might reduce asset losses and legal complications as the crypto industry continues to expand.