Taiwan’s MoJ Holds 210.45 BTC as Lawmakers Push to Treat Bitcoin as a Reserve Asset
Taiwan’s Ministry of Justice (MoJ) disclosed it currently holds 210.45 BTC plus roughly NT$1.3 billion in seized cryptocurrencies, primarily dollar-pegged stablecoins, plus ETH, BNB, TRX and Livepeer. The assets were seized during criminal investigations and are classified as proceeds of crime; officials say disposal options include public auction with proceeds to state coffers, but no final decision has been made. The disclosure reignited political debate after lawmaker Ko Ju-Chun urged evaluating bitcoin as a national reserve asset, calling virtual assets a matter of financial sovereignty. Separately, Taiwan’s central bank and Financial Supervisory Commission (FSC) are advancing tighter stablecoin oversight and a Virtual Asset Services Act (VASP). The central bank has asked for a formal supervisory role and recommended issuers hold part of reserves with it; the FSC says the VASP passed initial reviews and specific stablecoin rules could follow within six months, making a local stablecoin unlikely before late 2026. Key points for traders: reported government holding equals 210.45 BTC; total seized crypto value ~NT$1.3bn; stablecoins dominate holdings; regulatory tightening on stablecoins and a pending VASP may affect onshore stablecoin liquidity and market structure.
Neutral
The news is market-neutral overall. The MoJ holding 210.45 BTC is modest relative to global supply and unlikely to materially change Bitcoin’s liquidity or price by itself; disclosure may have limited short-term price effects driven by speculative positioning but not sustained directional impact. Political debate about treating Bitcoin as a reserve asset is symbolically bullish—if adopted it would signal state-level acceptance and could support long-term demand—but such a policy shift faces significant political, legal and monetary hurdles and is not imminent. More immediate and concrete are the regulatory developments: tighter stablecoin oversight and a pending Virtual Asset Services Act (VASP) increase regulatory uncertainty. Stricter rules and potential central-bank involvement in stablecoin reserves could reduce onshore stablecoin issuance and liquidity in Taiwan, possibly tightening local crypto market depth and affecting stablecoin-linked trading pairs. Historical parallels: government-held BTC disclosures (e.g., seizure auctions or Treasury sales) often cause short-lived volatility around auction events but rarely move the broader market unless large volumes are liquidated or major policy shifts follow (for example, Venezuela’s Petro or El Salvador adopting BTC produced larger narrative impacts because they changed demand dynamics). For traders: expect short-term headlines-driven volatility; monitor any auction announcements (timing and size) and VASP/stablecoin rule milestones. Medium-to-long-term effects hinge on whether Taiwan formalizes reserve treatment or materially alters domestic stablecoin supply—both would be gradually bullish, but current signals remain inconclusive.