Binance's will function after death... Perfect for bitcoin

[peter0425]

How many coins are you confident in to still do well after a couple of years? After you have already passed away? How many coins would you want to pass on to your children? For me, the answer is bitcoin. It is one of the few, if not the only one, I am confident that will still have good value over 10 or 15 years or maybe even more. It has always been a topic of discussion how to pass on the bitcoins we are holding now when we pass unexpectedly or not.

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

[Charles-Tim]

CZ proposed this I think two weeks ago, but my advise to people is that they should not hold any coins on an exchange except the money they are actively using to trade.

The best place to hold your coins are on cold noncustodial wallet that are open source.

People should learn about multisig, timelock and other inheritance means.

[Hatchy]

How many coins are you confident in to still do well after a couple of years? After you have already passed away? How many coins would you want to pass on to your children? For me, the answer is bitcoin. It is one of the few, if not the only one, I am confident that will still have good value over 10 or 15 years or maybe even more. It has always been a topic of discussion how to pass on the bitcoins we are holding now when we pass unexpectedly or not.

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

I've come across this for some time now, and is still see no good use of it aside for those people who blindly neglect the fact the fact that we are not supposed to store our coins using exchanges. Exchanges are centralised, meaning you storing coins with them, you are giving them full access to your funds. Let's not forget that not your keys, not your coins and if we use such features we literally are handing over our funds to these centralized bodies. Chances are that your family might not even get the funds probably because the exchange got hacked and all funds were stolen. Let's all try to see the bad side of this feature as it makes no sense to me...

[apogio]

These are scary things in my opinion. In general, I would use a CEX, but only to buy and immediately withdraw coins. I would never keep coins in there. As such, I would never trust a CEX to have any legal right to pass my inheritance to my descendants. Like Charles-Tim said, there are safer solutions. Perhaps not easier or more convenient, but definitely safer.

[cr1776]

While it is important to plan what would happen to your bitcoin (the only real choice for your scenario) using a centralized exchange is just a bad idea.  If history is any guide it is extremely risky to store them there for any longer period of time.  

Don't do it.

[Zlantann]

How many coins are you confident in to still do well after a couple of years? After you have already passed away? How many coins would you want to pass on to your children? For me, the answer is bitcoin. It is one of the few, if not the only one, I am confident that will still have good value over 10 or 15 years or maybe even more. It has always been a topic of discussion how to pass on the bitcoins we are holding now when we pass unexpectedly or not.

If I am keeping cryptocurrency as an inheritance for my dependents, it would be Bitcoin only. I don't have confidence in any altcions.

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

This option might be favored by many since some people don't make plans about their future. Since crypto owners are within their youthful age they might think it is needless to make plans for death. This has led to a high amount of unclaimed assets or funds due to untimely death.

I wouldn't keep my assets in a centralized platform because it's unsafe. My dependents already know what to do if I am no longer alive because I have exposed them to Bitcoin.

[Z-tight]

Could there be downsides to this function?

The feature in itself is. In order to be eligible for this, you have to store your coins in Binance, so what other downside are you looking for that could be worst than that. Congratulations to cz and binance for always coming up with ways to encourage people to store their funds in the exchange, the other time cz was saying 99% of people would lose coins in their self custody and now this.

If you are looking for an inheritance plan, i recommend you use one that doesn't put the custody of your coins in the hands of a third party, so you don't lose your coins while you are still alive, lol.

[notocactus]

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

Bitcoin has nlock function that can be used for inheritance. There is another way that is easily for inheritance, create a non custodial wallet and pass its backup information to your lovers. It is safer than storing your bitcoin on Binance and hope that Binance exchange will not die and your loved ones will be able to claim your bitcoin after your death.

Binance exchange can die even before your death.
Reminder: Do not keep your money in online accounts.
https://www.cryptowisser.com/exchange-graveyard/

[hyudien]

For me this is not the best way because even though binance is a well-known exchange they are not immune to hacking so storing coins there for children inheritance, grandchildren is not the right move. I agree more with @ Charles-Tim. Storing coins in non-custodial cold wallets is still one of the best ways. Remember when storing on an exchange you only have a claim not direct ownership. Not your keys, not your coins.

[DubemIfedigbo001]

Could there be downsides to this function?

The feature in itself is. In order to be eligible for this, you have to store your coins in Binance, so what other downside are you looking for that could be worst than that. Congratulations to cz and binance for always coming up with ways to encourage people to store their funds in the exchange, the other time cz was saying 99% of people would lose coins in their self custody and now this.

If you are looking for an inheritance plan, i recommend you use one that doesn't put the custody of your coins in the hands of a third party, so you don't lose your coins while you are still alive, lol.

CZ is a very smart guy and always comes up with features that ensures longevity and dominance of Binance in this crypto space. This feature would convince a lot of ignorant masses that Binance is safe for a long-term and increase their trust for the CEX, while in reality, they are placing their funds at greater risk by leaving it there.

Personally, anything that keeps my funds in the hand of a third party for long is a big NO for me. It is always non-custodial for long-term storage or nothing.

[Zaguru12]

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

The question about if there is a downside has straight answers, there are multiple down side to this, starting from the fact that this is encourages you keeping your coins on the exchange, this defeats the purpose of self custodianship and you “not your keys, not your coins”. Aside leaving your funds on the exchange another scare is the exchange might not even live long, if care is not taken the investor might out live the exchange because it is not immune to been hacked and no body should even bring the SAFU thing up here.

Another thing is binance is a centralized platform just like traditional banks we all know the rigorous protocols family members pass through to get a family inheritance off this platforms and this platforms can even just lock you out of your account or freeze your assets for flimsy excuses like tainted coins getting in. Personally I think the usual time lock of your self custodian wallet is the best thing for inheritance purposes

[Ruttoshi]

What do you expect from someone who own a centralized exchange, to scare people out from keeping funds in their exchange, I don't think so. This is another way to decieve the public that Binance is safe whereas we know that it has all the flaws as a centralized exchange.

Bitcoin should be kept in a noncustodial wallet till whenever you want it and not in CEX. Only dumb people will fall for this because there are good and safe way to pass on your bitcoin to your heir and not this. Who knows if Binance will be hacked in future.

[cabron]

What do you expect from someone who own a centralized exchange, to scare people out from keeping funds in their exchange, I don't think so. This is another way to decieve the public that Binance is safe whereas we know that it has all the flaws as a centralized exchange.

Bitcoin should be kept in a noncustodial wallet till whenever you want it and not in CEX. Only dumb people will fall for this because there are good and safe way to pass on your bitcoin to your heir and not this. Who knows if Binance will be hacked in future.

Its perfect for those who are not savvy enough to go through stuff they know nothing about. Importing is easy with our wallets but to guys who are only into investing using their binance account, its all there is. I think they will likely be using this option still.

And CZ may actually incentivized users who will be holding coins inside their exchange also just to make sure, the advantage is on their exchange. If they are trying to keep Binance on top of its competition, they are going to push this feature.

[Apocollapse]

CZ is smart with his idea, now how can people avoid Binance?

Binance got hacked, they have SAFU.
Someone have no access to their account and then after they die, the heirs will receive the coins.
Someone die due to accident, the heirs will receive the coins.
Another plus benefit, holding coins in Binance will earn interest.

But, but, this kind of idea is similar like product by insurance company, they will try to do any way to make you not able to claim the coins.

[goldkingcoiner]

CZ proposed this I think two weeks ago, but my advise to people is that they should not hold any coins on an exchange except the money they are actively using to trade.

The best place to hold your coins are on cold noncustodial wallet that are open source.

People should learn about multisig, timelock and other inheritance means.

100% agree.

The centralized exchanges will definitely find a way to take your money. Kucoin is already imposing "dormancy fees" on people.

Why would anyone trust a business rather than a trustless system is beyond me. It is always a trap. Always.

I would even go as far as to say do not hold your money on exchanges, even for trading purposes. If you need to trade there are better alternatives. Even DeFi is a better alternative than giving someone else custody of your entire wallet.

[Ambatman]

I smell Bull crap. This is an opportunity to convince uninformed to use binance as a holding wallet.
A dead man can't defend himself
There are many ways they can deny your next of kin of your funds.
Best still remains self custody and implementing strategies towards acquisition by the next of kin.

[coolcoinz]

Let's be honest, this is a feature most normal businesses like banks have used for decades. When your relative dies, you submit the death certificate and his last will and the money is yours.

It's amazing that Binance and other exchanges that legally operate as registered businesses act like it's a novelty. After all they are required by law to allow access to it's dead clients closest relatives if the court orders them to do so. So these things have functioned, just that you probably had to go to court first. Now it's much easier, but it's not as big of an improvement as CZ describes it.

[Wapfika]

Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?

See here.

Why not hold all the coins to hardware wallet and passed it to your beneficiary through a lawyer or safe. This way you will not rely on decentralized exchange feature just to transfer your holdings when you are gone.

Using this feature means you are storing your coins on exchange for a long time which is not advisable due to safety concern.

Not your keys not your coins. Hardware wallet is the best option to physically transfer ownership of your coins.

[milewilda]

CZ proposed this I think two weeks ago, but my advise to people is that they should not hold any coins on an exchange except the money they are actively using to trade.

The best place to hold your coins are on cold noncustodial wallet that are open source.

People should learn about multisig, timelock and other inheritance means.

The most preferred way but I do believe that there would be those people who would be making use of this feature because they dont want to hassle themselves on keeping out their keys but instead they would be that trying out to put up their coins into the exchange and trying to make use of this one and be contented and confident that once they do passed away then their family would be that told into, but here are the possible situtation could happen before you do possibly passed away unexpectedly:

1. Exchange hacks before you die. 
2. Binance would be just that simply keep silent after you die, since your family doesnt know about your holdings then they can opt in not to give it into your family.
3. Setting up a will and wallet lock on a custodial service is a big NO-NO.

Nothing beats out if you are the ones who had been holding your coins into your own open source, non custodial wallet and having that full control.
Setting up things in regarding about inheritance isnt that hard to follow after all.

[The Cryptovator]

CZ is the founder of a centralised exchange called Binance. So his thinking will be centralised as well. I am not surprised about his suggestion. It's something like a banking system where nominees are mandatory; in case of passing away, funds will be handed over to the nominees. He suggests from his perspective that since a lot of people are using Binance, he will never suggest not storing funds in Binance. Because this is his business, he will do everything for his business. I won't mind about his suggestion.

But, for our safety, we have to think for ourselves, not from a CZ perspective. I never feel comfortable with centralised exchanges, and I never trust them. Even with Binance, I have a bad experience regarding seized funds. So no question to store funds in a centralised exchange, especially if the amount is big. We must maintain a hardware wallet to secure our funds. We need to maintain a real-life notebook to write down everything, from where our next generation could get access to all my funds.