Spouses holding large amounts of Bitcoin may face the risk of “not getting a single cent” in divorce settlements. The UK passed the Digital Assets Property Act in December 2025, confirming digital assets as personal property, while Taiwan’s legal framework is still under review. The Legislative Yuan’s Legal Affairs Bureau has called for reference to UK legislation. Chainalysis estimates Taiwan’s annual transaction volume at $55 billion USD, with a total virtual asset market cap of approximately $3.9 trillion USD.
Taiwan’s $55 Billion USD Annual Virtual Asset Transactions Lack Legal Definition
In recent years, the virtual asset market has grown rapidly. According to central bank data, as of September 2024, the total market cap is about $3.9 trillion USD. Blockchain analytics firm Chainalysis estimates that from June 2023 to June 2024, the value of virtual assets traded in Taiwan was approximately $55 billion USD. This figure is staggering—about NT$1.7 trillion, close to Taiwan’s annual central government budget.
Such a scale of asset flow indicates that virtual assets are no longer niche investment tools but have become an important channel for Taiwanese to invest, manage wealth, and hold assets. However, there are still many uncertainties regarding the application or enforcement of existing laws. The most immediate question is: when couples divorce and divide property, how should virtual assets like Bitcoin and Ethereum be handled?
The Legislative Yuan is currently promoting amendments to the Civil Code’s Family Chapter, focusing on enhancing transparency of marital property. In the future, one party can request the remaining property to be divided and demand the other party to submit a “property inventory” and supporting documents. However, current laws do not clearly define “property” to include virtual assets, creating a significant legal loophole.
Experts worry that if the law does not clarify whether property inventories include virtual assets like Bitcoin and Ethereum, it could become a new avenue for spouses to hide assets. Imagine a scenario: during the marriage, one spouse accumulates wealth and converts a large sum into Bitcoin stored in a cold wallet. During divorce, if they do not actively disclose this, the other spouse may find it nearly impossible to discover these virtual assets through traditional property investigation mechanisms. Bank accounts, real estate, and stocks have public records, but Bitcoin wallet addresses are anonymous.
Even more complicated is the issue of valuation. Even if the law recognizes virtual assets as property, how to determine their value? Bitcoin prices fluctuate wildly, and divorce proceedings can last months or even years, during which prices may change significantly. Should the value be based on the price at the time of filing, at the time of judgment, or at the time of distribution? These technical issues require clear legal regulation.
Furthermore, executing the division of virtual assets is challenging. Traditional assets can be seized or frozen through court orders, but if one party refuses to surrender the private key to their Bitcoin, courts have little enforcement power. Unlike bank accounts or real estate, which can be frozen or seized, control of Bitcoin is entirely in the hands of the private key holder. Even if courts order the distribution of virtual assets, enforcement remains a major challenge.
Learning from UK Legislation to Address Legal Gaps Is Urgent
The Legal Affairs Bureau’s suggestions should be taken seriously. As virtual asset holdings in Taiwan continue to grow, related legal disputes will only increase. If laws remain in a gray area, not only will divorce property division face issues, but inheritance, debt recovery, and fraud remedies will also encounter difficulties.
Referring to the UK experience, Taiwan could adopt a similar “third category of property” model, explicitly including virtual assets within the property rights system. Specifically, amendments to the Civil Code should clearly stipulate:
Recommended Legislative Directions
Explicitly define virtual assets: including cryptocurrencies, NFTs, virtual game items, and other digital properties
Include in property inventory obligations: spouses must disclose virtual assets when requesting remaining property division
Establish tracing mechanisms: courts can require exchanges to provide transaction records of specific users when necessary
Set valuation standards: specify valuation timing and methods for virtual assets
Strengthen enforcement measures: impose penalties or presumptions of value for those refusing to surrender private keys
The $55 billion USD annual transaction volume indicates this is not a minor issue but a significant matter affecting many families. As more people allocate wealth into virtual assets, laws cannot continue to turn a blind eye. Delays in legislation will only lead to more unfair property division outcomes and infringe on spouses’ rights.
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