Alaska is not a place a lot of people associate with cryptocurrency and digital assets these days. That isn’t entirely surprising, even though it seems things are changing rapidly there as we speak. A bill has been signed into law in the state which pertains to how cryptocurrency belonging to deceased individuals should be accessed and managed. The revised Fiduciary Access to Digital Assets Act will set an interesting precedent for the rest of the US.
Alaska Sets an Interesting Cryptocurrency Precedent
One of the things few people like to think about is their own death. Despite the best efforts by scientists all over the world, we are still mortal shells with limited lifespans. For those of us involved with cryptocurrency, dying can create a whole new set of problems for the people we leave behind. After all, it is difficult to set up a “will” for cryptocurrency assets unless you make ample preparations on your own accord. Even then, the recipients may not necessarily care all that much about the digital asset wealth either.
In the state of Alaska, government officials have been giving the concept some serious thought, by the looks of things. More specifically, Governor Bill Walker signed a revision to the Fiduciary Access to Digital Assets Act this past Friday. That may not sound like a big deal, but it is a major improvement for cryptocurrency users active in the state. Alaska now has a recognized legal framework to determine how one’s digital assets can be handled by a trusted custodian. Digital assets will include cryptocurrencies, which creates some opportunities worth exploring.
Having the option to entrust your digital wealth to a custodian may sound like taking a step backward. However, this means said custodian is bound by law to only undertake specific actions associated with the digital assets in question. For example, it becomes perfectly legal to entrust a custodian with your Bitcoin balance and have this third party pass on your wealth to your offspring in the future. This doesn’t only apply to cryptocurrencies, mind you, but it is definitely one of the best use cases associated with this new form of money.
Interestingly, the revised Fiduciary Access to Digital Assets Act includes a section dedicated to cryptocurrency holdings. This form of money has long been considered a legal gray area, but that situation has finally come to change. Any Alaskan is now allowed to use online tools to direct a custodian to a designated recipient. Moreover, these tools can be used to avoid disclosing some or all of one’s digital assets. Even if an online tool is not used for these purposes, individuals can still use a will, trust, or other record to achieve the same purpose.
It is not hard to see why this new legislation could set an interesting precedent for other US states – and perhaps even countries – to follow in the future. In this day and age of digital money, we need to come up with new ways to safeguard our digital wealth and ensure no money is lost in the process. Especially where cryptocurrencies are concerned, such solutions are in high demand right now. None of us will live forever, and now is a good time to successfully secure our wealth for our family members and future generations.
Although this bill only relates to the state of Alaska, it is not unlikely we will see other states adopt similar guidelines in the future. Although this topic of conversation may make some people rather uncomfortable, subjects like these need to be given proper thought. It is good to see one state’s governor be rather open-minded in this regard.