KUALA LUMPUR (Sept 11): The exponential surge of the digital assets ecosystem that has grown significantly in recent years has raised the important issue of what happens to these digital assets when an owner/investor passes away.

According to Octowill Sdn Bhd, a recent MasterCard Impact Study shows that Malaysia is No. 1 in Southeast Asia for e-wallet usage with total transactions of approximately RM20 billion per annum.

Citing a cryptocurrency exchange service provider, Octowill said Malaysia has around 300,000 crypto users with a combined total investment of more than RM1 billion worth of 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 are worried about dying with their assets, adding that only 23% have any form of documented plan in place.

He explained that Octowill’s inheritance platforms are built using blockchain technology to create wills, e-nominate beneficiaries, distribution, and custody of assets.

“Octowill's digital inheritance solutions were created to mitigate the risks involved with maintaining digital assets and ease the process of asset transfers.

“Our system allows users to include digital assets and e-nominate their loved ones as beneficiaries. Through its various features, the system will then ensure that the assets will be passed on accordingly when the time comes,” he said.

Ramasamy said Octowill's unique system also allows for nomination without needing users to share sensitive information such as passwords or private key codes with the company.

“Octowill will have no access to such data thereby assuring security and confidentiality of clients’ estate plans. As the pandemic fuels e-commerce growth and creates many first-time traders and investors, the importance of ensuring the protection and inheritance of digital assets is relevant now more than ever,” he added.

The former airline pilot said the inspiration behind Octowill’s services stemmed from his personal experience of trying to incorporate some of his digital assets, particularly cryptocurrencies, into his existing will, but that the inclusion was impossible and extremely confusing.

“I was burdened with the daunting prospect that passing on my digital assets to my family may not be a straightforward process.

“With the help of my team, we were able to create Malaysia's first digital inheritance platform that can cater to the inheritance of various digital assets such as e-wallets, e-monies, trading or deposit accounts, secured data, social media logins, cryptocurrencies, NFTs, emails and others that cannot be easily passed on to your loved ones,” he said.

Ramasamy pointed out that trying to include digital assets into an old-fashioned will is fraught with complications, for instance sharing of one’s passwords with the family, for example, only begs the question of what happens if they lose it.

He added that a will executor may not have any clue about crypto exchanges and how to approach them upon the death of the account holder, explaining that digital e-nomination is a way forward to solve some of these problems.

“With our first-of-its-kind e-nomination service, we are ensuring that your digital assets are passed on in a safe manner, mitigating the risk of these assets becoming dormant and, in most cases, unclaimed.

“Octowill e-nomination is the most cost-effective and simplest way to protect your assets.

“Your nomination details are stored securely with highly encrypted blockchain technology, and they are accessible only with your digital fingerprint. An e-nomination contract is enforceable without probate. So it is easier and cheaper to administer,” he said.

He said users can e-nominate their assets in crypto wallets, money in financial institutions, balances in e-wallets, trading or deposit accounts and insurance policies.

“Providers of digital services also greatly benefit from the Octowill e-nomination services.

“We have solved a big problem for them as we have created a legally binding mechanism to return 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 soon.

“As more of our daily lives go online the majority of our future transactions will be digital, or crypto in nature, and as we become more accustomed to this new reality, particularly today’s younger generations, the ease of conducting business will be paramount.

“The e-nominations enable today’s digital-savvy consumers to really take responsibility for their future wealth and legacy planning. It is something that’s never too early to commence,” he said.