Every investor should keep their cryptoassets safe, with passwords and access data away from the internet and cybercriminals. But what happens when an unforeseen event puts an end to the life of a digital currency investor?
If the money left in the bank can be requested with a power of attorney and the presentation of a death certificate, in the crypto market, this can still be a problem.
If the deceased has left no clue about their cryptoasset wallet access data, the balance will be lost forever. However, companies that custody digital currencies are preparing to change this scenario.
One safe tip is to share your cryptoasset balance access information with a trusted relative. The family must also be informed about these values not to be lost.
Even through a will, it is possible to leave data about access to cryptoasset wallets of deceased persons. With a named beneficiary, this process can be requested at some exchanges, which are prepared to integrate this type of value transfer.
In an interview with Bloomberg, Coinbase stated that it provides an assistance service to the relatives of deceased investors with cryptoasset balances on the platform.
Through personal assistance, Coinbase transfers funds upon presentation of the user’s death certificate. In addition, a power of attorney in the beneficiary’s name must be presented when applying for the digital coins of the deceased person.
While there is still no option to inform beneficiaries on cryptoasset exchanges and custody platforms, the situation may worsen on applications such as digital wallets.
Without information about the deceased, accessing devices such as cold wallets can be even more challenging without the deceased’s access data. However, Gemini has told Bloomberg that it intends to include the option to inform some beneficiary to the company users.
“We hope to simplify this process in the future, so we’re working on adding the functionality of accounts’ beneficiaries to our platform”.