Taiwan Eyes Historic Move: Building National Bitcoin Reserve Using Seized Crypto Assets

Taiwan's government is making waves with a bold crypto play—repurposing confiscated digital assets into a sovereign Bitcoin treasury.

From crime to cornerstone: Authorities plan to transform seized crypto into strategic reserves, potentially reshaping the island's financial future.

While bureaucrats debate custody solutions, crypto traders joke about 'state-sponsored HODLing.' Because nothing says financial innovation like politicians discovering cold storage wallets.

Government entities prove to be long-term holders

Government entities hold an estimated 644,342 BTC, mostly seized from crypto-related crackdowns. The few exceptions are El Salvador and Bhutan, who have accumulated BTC from a mix of buying and mining. 

The current holdings of government entities surpass the treasury of Strategy. Government holdings are usually acquired at an extremely low cost basis, and there is no pressure to sell. Often, some of the seized BTC are still contentious, and some may be inaccessible despite court documents. 

There is currently no data on BTC controlled by Taiwan. China already holds 190,00 BTC, but does not consider the coins a part of a deliberate strategy. 

More BTC held by large-scale entities

BTC has changed its ownership structure, with more coins held by large-scale entities. Treasuries have continued to absorb coins, even without the intentions of active trading. 

BTC ownership has shifted from retail to both long-term and short-term whale wallets. In 2025, whales took profits on BTC, but the presence of corporate and government treasuries served to avoid panic and capitulation.

With the rise of derivative trading, long-term holders have fewer incentives to sell the actual coins. More treasuries and reserves also solidify the perception of BTC as a long-term bet on currency debasement.

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