Binance founder Changpeng Zhao (CZ) is urging crypto platforms to introduce a “will function.”

This is to address the growing need for reliable inheritance systems in the digital assets space.

Community Concerns

In a statement shared on X, CZ said, “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.”

The ex-Binance CEO also called on regulators to allow minors to hold crypto accounts that can receive payments but not trade. According to him, this would allow children to legally get digital assets left behind by family members. He emphasized that while inheritance is a sensitive topic, “it’s a feature everyone who has assets on a platform will need once.”

The conversation started with a post from Web3 community builder cryptobraveHQ, who referenced a tweet they had made in April. The crypto commentator pointed out that over $1 billion worth of crypto assets are transferred to centralized exchanges each year due to accidental deaths.

He explained that many traders either don’t inform their families about their holdings or fail to share details such as the number of assets or platforms they use. As a result, when these users pass away unexpectedly, their accounts become inactive, and the exchanges then end up getting their digital assets.

Binance’s Emergency Contacts and Inheritance Feature

In response to the raised issues, Binance rolled out an “emergency contacts and inheritance heir” feature on June 12. The update enables users to designate emergency contacts and submit an application if their account becomes inactive for an extended period or in the event of death. This allows people to choose in advance who may be eligible to get their crypto holdings.

Once the set inactivity threshold is reached and the user remains unresponsive, the exchange will contact the emergency contacts listed. If verification is successful, those individuals can begin the inheritance claim process.

Competitors like Coinbase and BitGo are using more traditional methods to handle crypto estate planning. The former requires heirs to provide legal documents like death certificates and wills. This process is manual and does not include any in-app beneficiary settings. The latter uses multi-signature wallets, cold storage protocols, and customizable access controls to support inheritance. This is done through legal third-party partnerships.

Meanwhile, Binance is also leading in Proof of Reserves (POR) reporting by releasing its disclosures monthly and on time. A new CryptoQuant report revealed that the exchange ranked first in transparency and consistently maintains a reserve coverage level above 100%.