People in China can now inherit the digital assets of their parents after them. This came out in the new legislative assembly meeting.
China recently passed a long-awaited Inheritance law that covers Digital assets too. But what led to this inclusion, what events occurred which emphasizes the need for inclusion of digital assets! Let us find it out!
The New Cryptocurrency Inheritance Law
In the third session of the 13th National People’s Congress(NPC), China’s legislature voted and passed the ‘Civil Code of the People’s Republic of China’.
In Addition to the Crypto regulations in China, According to the new law, the scope of Inheritance has been expanded to virtual assets as well. Therefore from Jan 01, 2021, virtual currencies like Bitcoin can be inherited.
Wang Chen, Vice Chairman of the Standing Committee of the National People’s Congress, told the session that,
“The compilation of the civil code is an important component with Comrade Xi Jinping at the core for developing the rule of law,”
Need for Inclusion – First Thoughts
An inheritance case in eastern China raised the question, how should one’s digital legacy be handled after their death?
A resident of Jiangsu upon his father’s death had to go through the notary process just to inherit his father’s mobile numbers. As his father was a businessman, his phone numbers were his virtual assets. No doubt he was successful in inheriting his father’s phone numbers but the need of digital inheritance geared up among the Chinese netizens.
Chen Kai, a Beijing-based lawyer and founder of China Will Registration Centre said in a report that the law of succession has remained unchanged since it was enacted in 1985. Since there was no such thing as a virtual asset, it was not necessary to include.
“Society has undergone huge changes since then and the law needs to be updated to keep pace with the country’s rapidly evolving society.
Chinese List their Digital Assets in Their Will
As society is transforming into cashless, more adoption of digital assets led to the need for dedicating a will to list out their digital assets. People born in or after the 1990s have an option to transfer their digital asset to other people after their death.
The digital assets mainly include money in their Alipay or WeChat pay accounts, virtual currencies, gaming accounts and QQ accounts. People as young as 18 created their will at the China Will Registration Centre.
Taking Everything into Account!
Digital Assets are now very important assets of the current generation. The society taking about cashless transactions possess digital assets sometimes end up owning multiple of them. In these scenarios, the law for inheriting them becomes more mandatory.
Several Chinese courts have also ruled that cryptocurrencies are property that should be protected by law.