The largest cryptocurrency exchange, Binance, has introduced a new tool to its platform, a feature allowing users to designate an emergency contact and heir for their assets. The update was released on June 12 as part of a broader initiative to protect users in the event of death or incapacitation.
What’s Known
Users can now pre-assign who will receive their cryptocurrency in case of death. This involves allocating assets to trusted individuals in specified proportions. The feature addresses a growing concern: more than $1 billion in crypto reportedly goes “unclaimed” every year due to the sudden death of asset holders, as highlighted by a crypto analyst back in April.
The update also includes the option to add an emergency contact someone who can reach out to the platform and initiate the asset transfer process if the primary owner becomes unavailable.
CZ’ Comment
Changpeng Zhao, former CEO of Binance, commented on the launch, stating that every centralized platform should implement a so-called “will function.” He emphasized that as long as humans remain mortal, it’s crucial that assets can be automatically distributed to designated recipients in the event of death.
Zhao also expressed support for allowing minors to hold crypto accounts not for trading, but for receiving funds. He believes regulation should make room for this possibility.
Community Response
The Chinese account cryptobraveHQ pointed out that this issue had already been raised in April, when they urged exchanges to adopt a “will function.” Now Binance has taken the first step. Users have also supported the idea and called on other platforms to follow Binance’s lead and implement similar mechanisms without delay.
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