The DIFC Courts have initiated the ‘digital assets will’, which allows the owners to dispose of their digital assets by utilizing a non-custodial wallet. This wallet will permit the individual to redistribute assets toward the required beneficiaries within their wallet and remain in total control of the mobilization of assets in and out during one’s lifetime, with assets eventually distributed as ‘specific gifts’.
Available from anywhere in the world, this online service allows investors and residents applying for a residency visa issued from Dubai to virtually connect via a video link to a compliance officer in Dubai. This is one of the initiatives announced on the second day of the five-day Global Gitex 2024 edition held at the Dubai World Trade Centre.
What Constitutes a Digital Asset?
Digital assets range from cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), through digital tokens to other forms of digital property. As the digital economy grows, so does the requirement for protection. The new service from DIFC will respond to this requirement by providing a legal framework for the distribution of digital assets through wills.
Overview of the Key Features of the DIFC Digital Asset Wills
- Non-custodial Wallets: The DIFC’s digital wills would make use of a non-custodial wallet that would allow the user to have full control of the assets throughout their lifetime. In this regard, users can comfortably mobilize and manage their assets, with the assurance that such assets would be transferred at the right time.
- Global Accessibility: Probably the most striking feature of the service is its global accessibility. Residents and investors can access this service from anywhere in the world. The process includes connecting to a compliance officer in Dubai video link and therefore is easily accessible to international users.
- Digital Assets Supported: The service for now supports cryptocurrencies which includes ETH, BTC, MATIC, USDC, USDT, and HBAR, but in the future, this is expected to be much further extended by the DIFC to ensure coverage for all types of digital assets.
- Tejouri Integration: The wills can also be added in the global digital vault, Tejouri, and acts as a cloud vault and online safe for data. As such, all information is stored in a secure manner and is accessed only by the chosen recipients.
Benefits of Registering Digital Asset Wills
- Safety and Authority: The usage of non-custodial wallets, it ensures the owner has full ownership. This makes certain that no third-party interference occurs in managing the assets, with due regard to an owner’s preference being adhered to.
- Legal Certainty: The legal framework drawn from DIFC provides an effective mechanism in the distribution of digital assets. This reduces the risk of dispute; thus, the beneficiaries enjoy their due share.
- Ease of Access: This service is accessible from anywhere in the world. In particular, this will be useful for expatriates and international investors.
- Comprehensive Coverage: Since the service will support a wide array of digital assets, with further plans for even more in the future, the DIFC’s service provides comprehensive coverage of all sorts of digital property.
How to Register a Digital Asset Will
Registration of the digital asset with the DIFC is straightforward, and the following are the steps involved:
- Creation of Non-Custodial Wallet: This is the first step, through which the creation of a non-custodial wallet for holding digital assets is made. A non-custodial wallet allows for full control over the assets during an individual’s lifetime.
- Link to a Compliance Officer: The users get connected via a video link with a compliance officer based in Dubai, whereby the registration process is secured and legally valid.
- Draft the Will: DIFC provides an online automated drafting service for the Will. It takes users through a step-by-step process on how to make a will that best relates to their wishes for the distribution of their digital assets.
- Will Registration: After drafting the will, it may be registered with the DIFC. The Will shall be added to the Tejouri digital vault, ensuring thereby that it is safely kept and accessed by none other than the designated recipients.
The Future of Digital Asset Management
The introduction of wills for digital assets by the DIFC is the latest milestone in developing estate planning. With digital assets continuing to become more prevalent, the need for secure and efficient mechanisms by which they can be managed will continue to grow. This new service offered by the DIFC offers a strong framework through which digital assets can be distributed, protecting the assets and appropriately distributing them to beneficiaries.
Conclusion
The DIFC’s digital asset wills will provide a full-service solution for the management and distribution of digital assets, from non-custodial wallets to global accessibility and integrated features with the Tejouri digital vault. This is yet another way that this service raises the bar in estate planning. Whether you are a resident or an investor, registering a ‘Digital Assets Will’ with the DIFC will finally mean that your digital property is protected and distributed as intended.
How Notary Public Dubai Can Assist You
The complexities of digital assets within estate planning can be quite overwhelming. Notary Public Dubai offers expert services to walk you through every detail you need to address. From online drafting and registering your digital asset will to ensuring that it meets all the legal requirements, our team will serve you. Feel free to reach out today to learn more about how we can help you protect your ‘digital Assets Will’.
