As billions of dollars in cryptocurrency surge globally, the urgent calls for platforms to adopt "will functions" ready for inheritance, protect digital assets, and empower responsible and future-oriented financial planning are increasing.

'Will Function' Necessary to Protect Billions in Cryptocurrency, Binance's CZ Says

Binance founder and former CEO Changpeng Zhao (CZ) has reignited the industry's concerns about the lack of proper estate planning mechanisms within cryptocurrency platforms with a candid message on social media platform X on June 19.

Pointing out the fundamental weakness that cryptocurrency investors face, CZ argued that the sector is still dangerously unprepared to handle what happens to digital assets when their owners pass away. The Binance founder wrote:

This is a topic people avoid, but the reality is that humans cannot live forever. Every platform must have a 'will' function — so that when someone is no longer around, their assets can be distributed into designated accounts according to specific proportions.

He also advocates for regulatory adjustments to allow minors to have accounts. "The regulatory framework should also allow minors to have accounts (they may be restricted from trading, but must be allowed to receive funds)," he emphasized.

CZ's remarks came after Binance's update and were made in response to a user on X, who pointed out that the platform's version upgrade on June 12 improved emergency communication and inheritance features, calling it thoughtful.

Users referenced his statement in April, noting that each year, unexpected deaths lead to over $1 billion in cryptocurrency assets inherited through centralized exchanges.

He acknowledged that he was quite surprised when Binance implemented these updates and expressed hope that other cryptocurrency exchanges would also prioritize adding similar emergency communication and inheritance functions to better address asset management in unforeseen circumstances.

In the subsequent post, Zhao clarified, "This is a feature that everyone (who has assets on the platform) will need at some point." While emphasizing that "no one wants to use" this feature, he noted: "It is better to be responsible for your loved ones." Highlighting the increasing complexity of non-custodial solutions, CZ commented:

Autonomy requires more preparation to execute correctly.

His comments underscore the growing demand for reasonable estate planning tools as digital assets become more prevalent. Despite concerns about the complexities of inheriting digital assets, some advocates of self-custody argue that with careful preparation, users can maintain full control while still ensuring valid inheritance plans through legal wills and secure key management solutions. They argue that decentralized solutions can coexist with custodial options, providing users with more choices based on their technical abilities and personal preferences.