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Bhutan

A hydro-powered bitcoin miner that walls crypto off: licensed activity lives only in Gelephu Mindfulness City, and home banks stay closed.

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10Firms holding a GFSO Financial Services Licence in GMC
US$500KMinimum capital for a virtual asset exchange (or 12 months' costs)
~13,000Peak bitcoin tracked in government-linked wallets (Arkham)

Bhutan came to crypto as a miner, not a market.

Druk Holding and Investments (DHI), the state's commercial arm, began adding cryptocurrency to its portfolio in 2019 and used surplus hydropower to mine bitcoin, partnering with Nasdaq-listed Bitdeer in 2023.

By October 2024 blockchain analysts at Arkham tracked about 13,000 BTC in wallets linked to the government, one of the largest sovereign holdings in the world.

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The turning point was the Gelephu Mindfulness City (GMC), a special administrative region in the south announced by the King in December 2023 and set up under a Royal Charter in 2024.

GMC imported Abu Dhabi Global Market's financial rules from 26 December 2024 and later re-enacted them as its own Financial Services Act 2025, with the Gelephu Financial Services Office (GFSO) as a single regulator for traditional finance and digital assets.

In January 2025 GMC said it would hold bitcoin, ether and BNB in its strategic reserves.

Outside GMC the line is firm.

On 30 April 2025 the Royal Monetary Authority (RMA) said crypto mining and exchanges are allowed only for GMC-registered entities, and that on-ramping through domestic banks stays restricted.

Inside GMC the GFSO had licensed ten firms by September 2026, including BTSE's exchange, custodian Ceffu Digital and DK Pte Ltd, licensed to take deposits and provide money services, under its 2026 Virtual Asset Guidance; the GFSO treats BTC, ETH, BNB, USDC and USDT as accepted virtual assets by default.

For builders, GMC offers an English common law rulebook, a US$500,000 capital floor for a crypto exchange and 0% income tax for non-citizen individuals until 2030, but licensing takes six to eight months to reach in-principle approval and requires real presence in Gelephu.

The national bitcoin stack is shrinking: Arkham counted about 3,100 BTC in May 2026, although DHI officials said they did not recall selling.

Who regulates

  • GFSOGelephu Financial Services Office

    In charge of

    Single independent regulator for financial services in Gelephu Mindfulness City under its Financial Services Act 2025, covering both traditional finance and digital assets.

    On crypto

    Licenses virtual asset dealing, custody, money services, exchanges and fiat-referenced token issuance, with ten licensees by September 2026 including BTSE, Ceffu and DK. Its 2026 Virtual Asset Guidance sets US$500,000 capital for an exchange, and it accepts BTC, ETH, BNB, USDC and USDT by default.

    GFSO website
  • GMCAGelephu Mindfulness City Authority

    In charge of

    Governing authority of Gelephu Mindfulness City, created under Royal Charter No. 1 of 2024. It runs the special administrative region and makes its laws with the assent of the Druk Gyalpo.

    On crypto

    Applied ADGM's financial rules from 26 December 2024, then enacted the Financial Services Act 2025, which makes virtual asset activity licensable by the GFSO. In January 2025 GMC said it would hold bitcoin, ether and BNB as strategic reserve assets.

    GMCA website
  • RMARoyal Monetary Authority of Bhutan

    In charge of

    Bhutan's central bank. It sets monetary policy, issues the ngultrum, and licenses and supervises banks and other financial institutions in Bhutan outside GMC.

    On crypto

    Its 30 April 2025 notification allows crypto mining and exchanges only for GMC-registered entities under GMC rules, and keeps crypto on-ramping through domestic banks restricted. It offers no crypto licence of its own.

    RMA website

What to watch

  • Whether the RMA eases its bar on domestic bank on-ramps as GMC licensees such as DK and UKA PAY build payment links with the rest of Bhutan.
  • The first fiat-referenced token issuer licensed by the GFSO, and more trading venues after BTSE's July 2026 licence.
  • What happens to Bhutan's bitcoin: on-chain trackers expect the tracked holdings to run out in late 2026, while DHI has not confirmed sales.
  • Further GMC-made laws in Phase Two replacing the ADGM rules still applied under the Application of Laws Act.

Quick answers

Who regulates crypto in Bhutan?

Three authorities shape crypto rules in Bhutan. GFSO (Gelephu Financial Services Office): independent regulator of all financial services, including virtual assets, inside Gelephu Mindfulness City. GMCA (Gelephu Mindfulness City Authority): makes GMC's laws under the Royal Charter, including the Financial Services Act and Income Tax Act. RMA (Royal Monetary Authority of Bhutan): central bank and regulator for the rest of Bhutan; restricts crypto on-ramps through domestic banks.

Do crypto exchanges need a licence in Bhutan?

Yes, though the regime is narrow or still phasing in. GFSO licenses VA firms only inside GMC; 10 licensees by Sept 2026, including BTSE's trading venue. The main licences are GFSO Financial Services Licence (virtual asset regulated activities) from GFSO, held by 10 as of 5 Oct 2026; GFSO licence to Operate a Multilateral Trading Facility (virtual asset exchange) from GFSO, held by 1 as of 5 Oct 2026; and GFSO permission for Issuing a Fiat-Referenced Token from GFSO. Four Pillars rates exchange licensing in Bhutan as partial (reviewed 5 Oct 2026).

Are stablecoins regulated in Bhutan?

Yes, though the regime is narrow or still phasing in. Issuing a fiat-referenced token is a GFSO-licensed activity in GMC; no issuer is on the register yet. Four Pillars rates its stablecoin regime in Bhutan as partial (reviewed 5 Oct 2026).

How is crypto taxed in Bhutan?

Non-citizen individuals in Gelephu Mindfulness City, to 2030. Four Pillars rates tax clarity in Bhutan as partial (reviewed 5 Oct 2026).

Can real-world assets be tokenised in Bhutan?

Yes, though the regime is narrow or still phasing in. Security tokens are regulated as securities under GMC's Financial Services Act and 2026 rulebooks. Four Pillars rates tokenisation and real-world assets in Bhutan as partial (reviewed 5 Oct 2026).

What changed most recently in Bhutan's crypto rules?

24 Jul 2026: BTSE licensed to operate a trading facility. BTSE Exchange Pte. Ltd became GMC's first licensed multilateral trading facility. 3 Jul 2025: GFSO issues its first Financial Services Licence. Matrix Gelephu was licensed for dealing as agent and custody.

What should companies watch next in Bhutan?

Whether the RMA eases its bar on domestic bank on-ramps as GMC licensees such as DK and UKA PAY build payment links with the rest of Bhutan. The first fiat-referenced token issuer licensed by the GFSO, and more trading venues after BTSE's July 2026 licence. What happens to Bhutan's bitcoin: on-chain trackers expect the tracked holdings to run out in late 2026, while DHI has not confirmed sales.

Timeline

  1. BTSE licensed to operate a trading facility

    BTSE Exchange Pte. Ltd became GMC's first licensed multilateral trading facility.

  2. GFSO issues its first Financial Services Licence

    Matrix Gelephu was licensed for dealing as agent and custody.

  3. RMA confines crypto business to GMC

    Mining and exchanges are allowed only for GMC-registered entities, and domestic bank on-ramping stays restricted.

  4. GMC plans a crypto strategic reserve

    It said it would recognise bitcoin, ether and BNB as reserve assets.

  5. ADGM financial services rules apply in GMC

    The Application of Laws Act 2024 brought in ADGM's regulations and rulebooks, and the Financial Services Act 2025 is deemed to run from this date.

  6. Bhutan's tracked bitcoin peaks near 13,000 BTC

    Arkham's count of government-linked wallets has fallen since.

  7. Royal Charter No. 1 of 2024 establishes GMC

    The charter gives the GMC Authority power to make laws, with the assent of the Druk Gyalpo.

  8. King announces Gelephu Mindfulness City

    The plan for a special administrative region with its own laws was unveiled on National Day.

  9. DHI and Bitdeer agree to build mining capacity

    The partners planned a fund of up to US$500 million for green digital asset mining in Bhutan.

  10. DHI starts adding crypto to its portfolio

    Bhutan's sovereign holding company began mining bitcoin with surplus hydropower.

Cite this page: Four Pillars Asia Digital Asset Policy Center, “Bhutan crypto regulation”, reviewed 5 Oct 2026, https://policy.4pillars.io/bhutan. Free to reuse with attribution; also as markdown and JSON.

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