On April 30, 2025, the Royal Monetary Authority of Bhutan (RMA), Bhutan’s central bank and primary financial regulator, issued a formal communication outlining its updated regulatory stance on cryptocurrencies. This move reflects Bhutan's cautious yet forward-looking approach to digital assets, balancing the need to safeguard its financial system while fostering responsible innovation in the digital economy.
Bhutan’s Phased Approach to Cryptocurrency Regulation
The RMA has adopted a phased and focused strategy to engage with the evolving landscape of cryptocurrencies. This strategy is grounded in three key priorities:
Protecting Citizens – by minimizing potential financial risks associated with volatile and unregulated digital assets.
Maintaining Financial Stability – by preventing systemic disruptions within the domestic financial system.
Supporting Responsible Innovation – by providing a regulated framework for emerging technologies where appropriate.
Key Regulatory Announcements
The RMA has confirmed the following regulatory directives:
1. Permission for Crypto Mining and Exchanges in Bhutan — Restricted to Gelephu Mindfulness City Entities
Crypto mining operations and cryptocurrency exchange services will be permitted only within the jurisdiction of the Gelephu Mindfulness City (GMC) and must be registered entities or business partners operating under the GMC’s regulatory framework.
This localized permission reflects Bhutan’s intent to create a controlled innovation zone within GMC — a smart city initiative with its own dedicated governance and regulatory architecture. It allows for digital asset experimentation in a ring-fenced environment while limiting exposure to the broader economy.
2. Continued Restriction on Crypto On-Ramping through Domestic Banks in Bhutan
The RMA has reaffirmed that on-ramping (i.e., converting local currency into crypto assets) through Bhutanese banks or financial institutions regulated by the RMA remains restricted. This means that:
1. Domestic banks are not permitted to facilitate crypto trading or offer crypto-related services to the public.
2. Bhutanese individuals and businesses cannot legally access crypto assets via domestic financial channels.
This restriction aligns with the RMA’s commitment to mitigate risks such as capital flight, anti-money laundering concerns, and price volatility, particularly in the absence of a comprehensive national crypto law.
Recent Developments in Bhutan’s Crypto and Blockchain Ecosystem
While the RMA maintains tight regulatory controls, Bhutan has nonetheless made notable advancements in the digital asset space in recent years. These developments reflect the Kingdom’s strategic exploration of blockchain technology within a highly regulated environment.
1. Ripple and Bhutan’s CBDC Pilot
In a pioneering move, the RMA has partnered with Ripple Labs to explore the development of a central bank digital currency (CBDC) using Ripple’s XRP Ledger-based platform. The goal of the pilot is to issue a digital Ngultrum that can enhance cross-border transactions, promote financial inclusion, and improve the efficiency of domestic payment systems. This pilot aligns with Bhutan’s digital transformation objectives while maintaining strong regulatory oversight and infrastructure control.
2. Binance Pay Integration in Bhutan’s Tourism and Digital Economy
In collaboration with Binance, Bhutan has recently enabled Binance Pay to allow tourists and digital consumers to make crypto-based payments for services such as hotels, travel packages, and online commerce. While not yet available for general domestic use, this integration opens the door for crypto utility in the tourism sector, particularly for foreign travelers who prefer digital assets over fiat currency. The adoption of Binance Pay reflects Bhutan’s desire to selectively modernize its economy while containing systemic risk.
3. Sustainable Crypto Mining with Hydropower
Bhutan has also attracted international attention for its hydropowered crypto mining initiatives. Leveraging the Kingdom’s abundant renewable energy sources, these operations are largely spearheaded by state-owned enterprises like Druk Holding & Investments (DHI) in collaboration with global partners. This model allows Bhutan to monetize excess clean energy and diversify state revenue streams, all within the confines of sustainability and regulatory oversight.
Broader Regulatory Context
While Bhutan has not banned cryptocurrencies outright, the country has taken a measured and conservative approach to integrating digital assets into its financial ecosystem. The selective permission granted to GMC indicates that Bhutan is testing crypto innovation within a defined legal and economic boundary, possibly as a precursor to broader regulatory reforms in the future.
In the interim, no retail trading, crypto custody, or public crypto transactions are authorized in Bhutan, except as permitted under the GMC’s special jurisdiction.
Legal Considerations for Crypto Businesses in Bhutan
For those seeking to engage in cryptocurrency-related activities in Bhutan:
1. You must be registered under the GMC regulatory regime to legally participate in crypto mining or exchange activities.
2. Direct crypto investments or trading via local banks or financial intermediaries remain prohibited.
3. Activities related to Binance Pay or crypto-based tourism services must be conducted under authorized frameworks and partnerships.
Businesses considering crypto ventures in Bhutan should conduct due diligence and obtain regulatory advice before proceeding.
How Basnet Attorneys Can Help
At Basnet Attorneys and Law, we advise clients on financial regulations, fintech compliance, and emerging technologies in Bhutan. If you are exploring cryptocurrency opportunities, considering establishing operations in Gelephu Mindfulness City, or require assistance with RMA or GMC licensing procedures, our firm can guide you through the regulatory landscape.
Contact us today for expert legal guidance on doing crypto business in Bhutan — legally and responsibly.
Email: basnet@basnetl.com
Call: +97517661648