Taiwan Considers Bitcoin as Reserve Asset Amid Ministry of Justice Seizures

Taiwan's Ministry of Justice has revealed that it currently holds 210.45 BTC acquired through criminal investigations, sparking discussions among lawmakers about whether Bitcoin should be recognized as a reserve asset. At the same time, regulatory bodies are moving towards implementing a stricter framework for stablecoins.

Key Takeaways

Taiwan's Ministry of Justice currently retains 210.45 BTC from criminal cases.
Ongoing discussions among lawmakers concern Bitcoin's potential status as a strategic reserve asset.
The Ministry's digital asset seizures total around 1.3 billion New Taiwan dollars, with stablecoins forming the largest share.
Stricter oversight for stablecoin issuers is being advocated by Taiwan's central bank.
Proposed regulations for stablecoins could be introduced within six months, with a local stablecoin potentially launched by late 2026.

Taiwan debates bitcoin reserves and stricter stablecoin oversight.

Taiwan's Bitcoin Holdings and National Debate

Recent disclosures by Taiwan’s Ministry of Justice indicate the government holds a significant amount of Bitcoin along with various stablecoins, categorized as proceeds from criminal activities. As these assets remain in state custody, authorities are evaluating future management strategies, which may include selling them through public auctions with proceeds directed to the government. This holding could position Taiwan as the eighth-largest holder of Bitcoin worldwide based on current data.

While Bitcoin constitutes a small portion of the total digital assets seized by Taiwanese authorities, the Ministry of Justice reports that the combined value of all seized cryptocurrencies stands at about 1.3 billion New Taiwan dollars. Of this, stablecoins tied to the U.S. dollar make up the majority, alongside other cryptocurrencies like Ether, Binance Coin, Tron, and Livepeer.

The Push for Bitcoin as a Strategic Asset

The Ministry of Justice noted that its assets are part of ongoing efforts to establish consistent procedures for the seizure, storage, and disposal of digital assets across judicial operations. This revelation has ignited a political discussion on whether Bitcoin should be regarded as a strategic national asset. Lawmaker Ko Ju-Chun advocated for this view, stating, “Virtual assets are no longer just speculative commodities, but a new battleground for national security and financial sovereignty,” during a financial inquiry at the Legislative Yuan.

Concurrently, Taiwan’s central bank has proposed that stablecoin issuers be subject to tighter regulations, suggesting that these issuers should deposit a portion of their reserves with the central bank. This call for oversight aims to mitigate risks associated with exchange-rate stability and payment systems under the forthcoming Virtual Asset Services Act proposed by the Financial Supervisory Commission (FSC).

FSC Chairman Peng Jin-long informed the legislature that the bill has successfully moved past its initial reviews, with potential approval during the next legislative session. Following this, specific regulations tailored for stablecoins are expected within six months, with the introduction of a local stablecoin anticipated no sooner than late 2026, as stated by Peng.