The government of Taiwan has placed Bitcoin at the forefront of a significant political discussion after the Ministry of Justice revealed it currently holds 210.45 BTC seized during criminal investigations. This revelation has ignited a broader debate regarding the potential role of Bitcoin in the nation”s strategic reserves.
These seized assets are still classified as criminal proceeds and remain under state control while authorities deliberate on their future. Officials have not reached a final decision regarding the fate of these bitcoins. One option under consideration includes public auctions, with proceeds directed towards the national treasury. If recognized as a government reserve, Taiwan could emerge as one of the top ten state holders of Bitcoin globally.
The 210 BTC is merely a fraction of the total cryptocurrency holdings managed by the Ministry of Justice, which amount to approximately NT$ 1.3 billion when evaluated at the time of the announcement. Stablecoins pegged to the US dollar constitute the largest portion of this portfolio, alongside Ether and smaller quantities of other digital currencies, including BNB, Tron, and Livepeer.
The recent disclosure has reignited discussions within the Legislative Yuan regarding Bitcoin“s potential significance in Taiwan”s financial strategy. Last month, legislator Ko Ju-Chun advocated for the issue to be treated as a matter of national interest, emphasizing the growing importance of digital assets. Ko, who serves as the vice president of the US-Taiwan Caucus in the Legislative Yuan, made these comments during a general session focused on financial inquiry.
As political discourse unfolds, monetary authorities are adopting a cautious stance. In November, Taiwan”s central bank called for stricter regulations on stablecoins, mandating that issuers maintain a portion of their reserves under direct supervision of the central bank. This initiative aims to mitigate risks associated with currency stability and the payment system.
Moreover, the Financial Supervisory Commission (FSC) is working on a proposed Virtual Assets Services Provider (VASP) Act. FSC Chairman Peng Jin-long indicated that the legislation has already undergone initial reviews and may progress to a final vote in the upcoming legislative session. New regulations specifically targeting stablecoins are expected to be introduced within the next six months, pushing any local launches beyond 2026.
