KUALA LUMPUR (September 11): The exponential boom in the digital asset ecosystem that has grown significantly in recent years has raised the important question of what happens to these digital assets when an owner / investor dies.
According to Octowill Sdn Bhd, a recent MasterCard impact study shows Malaysia to be No. 1 in Southeast Asia for the use of e-wallets with a total transaction total of around RM20 billion per year.
Citing a cryptocurrency exchange service provider, Octowill said Malaysia has around 300,000 crypto users with a combined total investment of over RM1 billion in digital assets.
In an email interview, Octowill Founder and CEO Selvarajah Ramasamy said recent studies have also echoed this concern, showing that 89% of cryptocurrency investors fear dying with their assets, adding that only 23% have some form of documented plan in place.
He explained that Octowill’s legacy platforms are built using blockchain technology to create wills, electronically designate beneficiaries, distribute and hold assets.
âOctowill’s digital legacy solutions were created to mitigate the risks associated with the maintenance of digital assets and facilitate the process of transferring assets.
âOur system allows users to include digital assets and electronically designate loved ones as beneficiaries. With its different functionalities, the system will then ensure that the assets are passed on accordingly when the time comes, âhe said.
Ramasamy said Octowill’s unique system also enables appointment without users sharing sensitive information such as passwords or private key codes with the company.
âOctowill will not have access to this data, thus ensuring the security and confidentiality of clients’ estate plans. As the pandemic fuels the growth of e-commerce and creates many traders and investors for the first time, the importance of ensuring the protection and legacy of digital assets is more relevant than ever, âhe said. he adds.
The former airline pilot said the inspiration behind Octowill’s services came from his personal experience of trying to integrate some of his digital assets, especially cryptocurrencies, into his existing will, but that the inclusion was impossible and extremely confusing.
âI was overwhelmed by the disheartening prospect that passing on my digital assets to my family might not be a straightforward process.
âWith the help of my team, we were able to create Malaysia’s first digital legacy platform which can support legacy of various digital assets such as e-wallets, e-currencies, trading accounts. or deposit, secure data, connections to social networks, cryptocurrencies, NFTs, emails and the like that cannot be easily transmitted to your loved ones, âhe said.
Ramasamy pointed out that trying to include digital assets in an old-fashioned will is fraught with pitfalls, such as sharing passwords with family, for example, only raises the question of what happens if they lose them.
He added that an executor may not have a clue about crypto exchanges and how to approach them upon the death of the account holder, explaining that the digital electronic appointment is one way to solve some of these issues.
âWith our one-of-a-kind electronic nomination service, we ensure that your digital assets are transmitted securely, mitigating the risk of those assets going dormant and, in most cases, unclaimed.
âOctowill’s e-nomination is the cheapest and easiest way to protect your assets.
âYour appointment details are stored securely with highly encrypted blockchain technology, and they are only accessible with your digital fingerprint. An electronic appointment contract is enforceable without homologation. So it’s easier and cheaper to administer, âhe said.
He said users can e-nominate their assets in crypto wallets, money in financial institutions, balances in electronic wallets, trading or deposit accounts, and insurance policies.
âDigital service providers also benefit greatly from Octowill’s electronic nomination services.
“We have solved a big problem for them because we have created a legally binding mechanism to return the assets to a beneficiary selected by the user of their services,” he said.
Ramasamy said Octowill also plans to launch other forms of digital assets such as email, media and phone content in the near future.
âAs our daily lives go online, the majority of our future transactions will be digital or crypto in nature, and as we get used to this new reality, especially today’s younger generations, the ease of doing business will be paramount.
âElectronic nominations allow today’s savvy consumers to take real responsibility for their future wealth and for planning their legacy. It’s something that is never too early to start, âhe said.