The main argument for the adoption of cryptocurrencies is the security it brings because of the decentralized underlying technology. Yet it is precisely this type of technology that also causes problems; it is impossible to access the crypto funds if the owner has died. There is currently no institution that can regulate inheritance tax for cryptocurrencies.
A similar problem arose when the CEO of the Canadian cryptocurrency exchange QuadrigaCX died in India. The CEO was reportedly the only one who managed the private keys of the wallets, leaving some 115,000 customers with no access to their cryptocurrency.
Crypto investors are therefore looking for services that can guarantee a safe and transparent solution to this problem. There are several blockchain companies and developers who claim that they can guarantee that the private keys of the portfolios are transferred to heirs after death. Such services are also called cryptocurrency custody services.
This means that the cryptocurrency custody service securely stores users’ private keys until a certain event occurs that is mentioned in the contract. However, these services are not only focused on deaths.
An Italian startup called Crypto360 claims to be able to offer a solution. The company has introduced a new off-line cryptocurrency custody and transfer service for users. According to the white paper and the news on the official website, the platform will be fully active from Tuesday 5 March 2019.
A comparable service is already offered by DigiTrust, a platform from Singapore. The platform helps people to easily arrange their wills so that users can prepare for all circumstances; from disability to death. Digital assets can be transferred to each heir mentioned on the DigiTrust platform and they meet the set criteria.