# Bhutan crypto regulation From the Four Pillars Asia Digital Asset Policy Center. Cite as: Four Pillars Asia Digital Asset Policy Center, "Bhutan crypto regulation", reviewed 2026-10-05, https://policy.4pillars.io/bhutan. Free to reuse with attribution: cite "Four Pillars Asia Digital Asset Policy Center" and link to the page the fact comes from (each market has its own URL), and to the primary source where one is given. Terms: https://policy.4pillars.io/developers#attribution Page: https://policy.4pillars.io/bhutan Region: South Asia. Last reviewed: 2026-10-05. > A hydro-powered bitcoin miner that walls crypto off: licensed activity lives only in Gelephu Mindfulness City, and home banks stay closed. 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. 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. ### Snapshot - Exchange licensing: Partial. GFSO licenses VA firms only inside GMC; 10 licensees by Sept 2026, including BTSE's trading venue - Stablecoin regime: Partial. Issuing a fiat-referenced token is a GFSO-licensed activity in GMC; no issuer is on the register yet - Tokenisation & RWA: Partial. Security tokens are regulated as securities under GMC's Financial Services Act and 2026 rulebooks - Retail access: Restricted. RMA keeps domestic bank on-ramps for crypto closed; licensed crypto business is confined to GMC - Tax clarity: Partial. GMC: 15% corporate tax and 0% for non-citizen individuals to 2030; no crypto-specific tax rules ### Quick answers **Is crypto legal in Bhutan?** Only in narrow cases. RMA keeps domestic bank on-ramps for crypto closed; licensed crypto business is confined to GMC. Four Pillars rates retail access in Bhutan as restricted (reviewed 5 Oct 2026). **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. ### Key numbers - 10 Firms holding a GFSO Financial Services Licence in GMC (as of 2026-10-05) - US$500K Minimum capital for a virtual asset exchange (or 12 months' costs) (as of 2026) - ~13,000 Peak bitcoin tracked in government-linked wallets (Arkham) (as of 2024-10) - 0% GMC income tax for non-citizen individuals, through 2030 (as of 2026-10-05) ### 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. ### Regulators - **GFSO**, Gelephu Financial Services Office: Independent regulator of all financial services, including virtual assets, inside Gelephu Mindfulness City. Single independent regulator for financial services in Gelephu Mindfulness City under its Financial Services Act 2025, covering both traditional finance and digital assets. 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. - **GMCA**, Gelephu Mindfulness City Authority: Makes GMC's laws under the Royal Charter, including the Financial Services Act and Income Tax Act. 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. 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. - **RMA**, Royal Monetary Authority of Bhutan: Central bank and regulator for the rest of Bhutan; restricts crypto on-ramps through domestic banks. Bhutan's central bank. It sets monetary policy, issues the ngultrum, and licenses and supervises banks and other financial institutions in Bhutan outside GMC. 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. ### Licences #### GFSO Financial Services Licence (virtual asset regulated activities) - Regulator: GFSO - Legal basis: Financial Services Act 2025; GFSO rulebooks; Virtual Asset Guidance 2026 - Covers: Dealing as principal or agent, custody, money services, asset management, arranging and advising in relation to virtual assets in or from GMC; the same licence covers traditional finance. - Requirements: Initial meeting with the GFSO, then an application reviewed over about six to eight months to in-principle approval; Capital of US$200,000 or six months' expenses for dealers, custodians and money services; US$10,000 for arrangers and advisers; Local GMC company, GMC bank account, office space and key staff hired before the licence is issued; Only Accepted Virtual Assets (BTC, ETH, BNB, USDC, USDT by default) may be offered; Annual supervision fee of US$5,000 per regulated activity - Holders: 10 (as of 2026-10-05) - Notable holders: BTSE Exchange Pte. Ltd, Ceffu Digital Pte Ltd, DK Pte Ltd, Matrix Gelephu Pte Ltd, Matrix Bhutan Pte Ltd, KairosX Gelephu Pte. Ltd., 8020 Finance, UKA PAY Pte Ltd - Official register: - Page: https://policy.4pillars.io/bhutan/licences#lic-1 #### GFSO licence to Operate a Multilateral Trading Facility (virtual asset exchange) - Regulator: GFSO - Legal basis: Financial Services Act 2025; Conduct of Business Rulebook; Virtual Asset Guidance 2026 - Covers: Running a crypto exchange in GMC that matches buyers and sellers of accepted virtual assets. - Requirements: Capital of US$500,000 or 12 months' operating expenses, whichever is higher, held in fiat; Market surveillance, fair and orderly trading and market abuse controls; Custody arrangements and technology governance for wallets and private keys; Application and annual supervision fee of US$50,000 - Holders: 1 (as of 2026-10-05) - Notable holders: BTSE Exchange Pte. Ltd - Official register: - Page: https://policy.4pillars.io/bhutan/licences#lic-2 #### GFSO permission for Issuing a Fiat-Referenced Token - Regulator: GFSO - Legal basis: Financial Services Act 2025 (section 53B); Virtual Asset Guidance 2026 - Covers: Issuing a stablecoin that references a single fiat currency and is redeemable for it, from GMC. - Requirements: Reserve of high-quality liquid assets in the same currency as the token; Separate regulated activity requiring its own licence and discussion with the GFSO before applying; Redemption rights for holders at the referenced fiat amount - Official register: - Page: https://policy.4pillars.io/bhutan/licences#lic-3 ### Timeline - 2019: DHI starts adding crypto to its portfolio. Bhutan's sovereign holding company began mining bitcoin with surplus hydropower. - 2023-05: 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. - 2023-12-17: King announces Gelephu Mindfulness City. The plan for a special administrative region with its own laws was unveiled on National Day. - 2024-02-10: 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. - 2024-10: Bhutan's tracked bitcoin peaks near 13,000 BTC. Arkham's count of government-linked wallets has fallen since. - 2024-12-26: 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. - 2025-01: GMC plans a crypto strategic reserve. It said it would recognise bitcoin, ether and BNB as reserve assets. - 2025-04-30: RMA confines crypto business to GMC. Mining and exchanges are allowed only for GMC-registered entities, and domestic bank on-ramping stays restricted. - 2025-07-03: GFSO issues its first Financial Services Licence. Matrix Gelephu was licensed for dealing as agent and custody. - 2026-07-24: BTSE licensed to operate a trading facility. BTSE Exchange Pte. Ltd became GMC's first licensed multilateral trading facility. ### Primary sources - [Gelephu Financial Services Office: licensing process and Financial Institutions Directory](https://gmc.bt/GFSO). Gelephu Financial Services Office (GFSO), 2026-10-05, in force. Official licensing route (initial meeting, application, in-principle approval, licence) and the public register, which listed ten licensed firms when checked on 5 October 2026. - [Fund Rulebook (FUNDS), Version 1.0](https://gmc.bt/pdfs/FUND_RULEBOOK_Ver_1.0_26.05.2026.pdf). Gelephu Financial Services Office (GFSO), 2026-05-26, in force. Rules for domestic and foreign funds offered in or from GMC, relevant to crypto and tokenised-asset fund managers. - [General Rulebook (GEN)](https://gmc.bt/pdfs/GENERAL_RULEBOOK_2026_.pdf). Gelephu Financial Services Office (GFSO), 2026-05-07, in force. Core rules on authorisation, governance, systems and controls and reporting that apply to every GFSO licensee, including virtual asset firms. - [Market Infrastructure Rulebook (MIR)](https://gmc.bt/pdfs/25.03.2026_1345_GFSO_Market_Infrastructure_Rulebook_(MIR).docx.pdf). Gelephu Financial Services Office (GFSO), 2026-03-25, in force. Rules for licensed exchanges and clearing houses in GMC (Licensed Bodies), covering suitability, governance, market operation and default rules. - [Anti-Money Laundering and Sanctions Rulebook (AML)](https://gmc.bt/pdfs/10.03.2026_1330_GFSO_AML_Rulebook.pdf). Gelephu Financial Services Office (GFSO), 2026-03-10, in force. AML, counter-terrorist financing and sanctions duties for all GFSO licensees, applied to virtual asset firms together with the Travel Rule expectations in the Virtual Asset Guidance. - [Conduct of Business Rulebook (COBS)](https://gmc.bt/pdfs/17.02.2026%20_1630_GFSO_Conduct_of_Business%20(COBS)_Rulebook.pdf). Gelephu Financial Services Office (GFSO), 2026-02-17, in force. Client classification, disclosure, client money and multilateral trading facility rules, including provisions specific to virtual assets; the Virtual Asset Guidance adds crypto risk warnings. - [GFSO Virtual Asset Guidance 2026 (Version 1.0)](https://gmc.bt/pdfs/GFSO_Virtual_Asset_Guidance.pdf). Gelephu Financial Services Office (GFSO), 2026, guidance. Sets out accepted virtual assets, capital (US$200,000 for dealers and custodians, US$500,000 for an exchange), custody, technology and AML expectations, and the framework for stablecoin issuers. - [Notification: RMA's Regulatory Stance on Crypto Currency](https://www.rma.org.bt/view_news/106/). Royal Monetary Authority of Bhutan (RMA), 2025-04-30, guidance. Allows crypto mining and exchanges only for GMC-registered entities under GMC's regulatory framework, and keeps crypto on-ramping through RMA-regulated domestic banks restricted. - [Application of Laws Act 2024 (Law No. 1 of 2024)](https://gmc-image-storage.s3.ap-southeast-1.amazonaws.com/legislatioin/jsgr3bgwj08meocxl3ab0jtt.pdf). Gelephu Mindfulness City Authority, 2024-12-26, in force. Applies Singapore common law and specified ADGM financial services rules in GMC from 26 December 2024, giving crypto firms a working rulebook from day one. Amended in 2025 and 2026; the ADGM regulations themselves were replaced by GMC's Financial Services Act 2025. - [Financial Services Act 2025 (Law No. 5 of 2025)](https://gmc-image-storage.s3.ap-southeast-1.amazonaws.com/legislatioin/u1v2pwtpqxia31knvi7edstv.pdf). Gelephu Mindfulness City Authority, 2024-12-26, in force. GMC's omnibus financial law, replacing the imported ADGM regulations and deemed in operation from 26 December 2024. It requires a GFSO licence for regulated activities in virtual assets and makes issuing a fiat-referenced token a regulated activity. - [Income Tax Act 2025 (Law No. 6 of 2025)](https://gmc-image-storage.s3.ap-southeast-1.amazonaws.com/legislatioin/pqz64hdf69sas5jh9juir41z.pdf). Gelephu Mindfulness City Authority, 2024-12-26, in force. Deemed in operation from 26 December 2024, with some provisions commenced later by notification. Taxes companies in GMC at 15% and non-citizen individuals at 0% on income derived up to 31 December 2030; it has no crypto-specific provisions. - [Royal Charter of Gelephu Mindfulness City Special Administrative Region (Royal Charter No. 1 of 2024)](https://gmc-image-storage.s3.ap-southeast-1.amazonaws.com/legislatioin/ff6qho5sstlxip549gkrvabx.pdf). His Majesty the King of Bhutan / Gelephu Mindfulness City Authority, 2024-02-10, in force. Granted by the Druk Gyalpo on 10 February 2024, it creates GMC as a special administrative region with legal autonomy and lets its Authority make laws, the basis for its separate financial regime. The PDF is GMC's own file, linked from its official legislation page.