Binance Opens the Door to Digital Asset Inheritance: When Crypto Is No Longer a "Dead Asset"
In a quiet update in July 2025, crypto exchange Binance rolled out "emergency contact" and "asset beneficiary" features in its official app. The move is seen as a pivotal milestone in the push to legitimize and personalize digital asset inheritance in Web3. From "Forgotten" Assets to Digital Inheritance Rights According to figures shared by an industry KOL, over $1 billion in crypto assets are left behind each year when owners pass away without leaving access credentials or a transfer plan. In most cases, if the assets sit on an exchange like Binance, they lie dormant in a wallet and become permanently inaccessible. If held in cold storage, they simply... vanish from circulation.
In a quiet update in July 2025, crypto exchange Binance rolled out "emergency contact" and "asset beneficiary" features in its official app. The move is seen as a pivotal milestone in the push to legitimize and personalize digital asset inheritance in Web3.
From "Forgotten" Assets to Digital Inheritance Rights
According to figures shared by an industry KOL, over $1 billion in crypto assets are abandoned each year when owners pass away without leaving access credentials or a transfer plan. In most cases, if the assets sit on an exchange like Binance, they lie dormant in a wallet and become permanently inaccessible. If held in cold storage, they simply... vanish from circulation.
Binance's new solution — allowing users to designate an emergency contact who will be notified and can gain access to the assets if the account is inactive for an extended period (12 months by default) — is a direct answer to the long-standing problem of digital asset inheritance.
Chinese Law: Gaps Exist, But Wide Enough to Start
According to an analysis by attorney Liu Zhengyao, China's current legal framework provides sufficient grounds to recognize crypto assets as inheritable property:
- Chinese courts have repeatedly ruled that Bitcoin and other digital assets have the legal character of property.
- Article 127 of China's Civil Code explicitly states: "The law protects virtual property on the internet."
- In practice, courts have also recognized disputes involving digital assets in both criminal and civil cases.
In theory, then, if a person leaves a will or designates a beneficiary for their crypto assets on Binance, the law could fully recognize it. However, this may still be contested if a conflict arises between civil law (which supports inheritance) and administrative regulations (which ban exchanges from operating in mainland China).
The 9.24 Ban Complication and Legal Risk
A key point to keep in mind is the "9.24 Notice" of 2021, in which China banned foreign crypto exchanges from providing services to domestic users. The issue arises when an heir (for example, the deceased's biological child) was not designated in Binance's system — they could take the matter to court and argue that inheriting assets through Binance constitutes a "violation of the law," seeking to void the arrangement and redistribute the assets under Chinese law.
Conclusion: Web3 Assets Are Entering the "Life Cycle"
Despite the ongoing debate, Binance's digital asset inheritance feature signals that Web3 is maturing — moving beyond speculation and investment to encompass more human dimensions, such as the right to leave a legacy.
As laws gradually adapt to accommodate digital assets, Binance's move could set an important precedent for the entire industry. A new generation of investors, from developed and developing countries alike, will begin to view Web3 assets not just as investment vehicles, but as part of the family estate.