How cryptocurrency is transferred in the event of death

Cryptocurrencies, such as virtual coins that lack a counter value recognized by a third party and are accessible through an encrypted key, are an integral part of a person's digital estate, specifically classified as digital assets with financial value.

In the absence of specific legislation regarding the transfer of digital wealth, particularly cryptocurrencies, the right of the heirs to inherit the deceased's digital estate remains intact. This includes inheriting the deceased's virtual wallet.
The issues that arise in this case are not of a legal nature, but rather practical ones, as they are related to access to the deceased’s digital wallet.
Therefore, for the purpose of mortis causa transmission, the way cryptocurrencies were held by the deceased during their lifetime is crucial.

Specifically, if the deceased held an account with a bank or an authorized intermediary, such as an exchange, the institution will be required, if the heirs submit a formal request, to provide the access codes to the virtual wallet.
In contrast, if the deceased personally held the access key to their virtual wallet, whether through software, a piece of paper on which the encrypted key was printed, or on a hardware device similar to a USB stick, problems may arise regarding their retrieval. This is because there is no authorized third party to contact.

In conclusion, in order to prevent the depletion of one’s digital wallet, especially if the value of cryptocurrencies is significantly increasing, it is advisable to make the encrypted keys known to the heirs through testamentary provisions.
In this regard, on one hand, it is necessary to ensure the secrecy of the access keys by storing them in an encrypted file within the will, and on the other hand, to allow the heirs to access them upon the death of the decedent.

A specialized company like Agenzia delle Successioni could store, assist, and advise on the best ways to preserve the access keys, ensuring that the heirs can inherit the digital wallet smoothly.