Bhutan opens fast-track crypto licensing route for global firms

Bhutan’s Gelephu Mindfulness City has introduced a fast-track licensing system for crypto and fintech firms already regulated in financial hubs such as Singapore, Hong Kong, and Abu Dhabi.

According to a recent press release, the new framework allows qualifying firms to incorporate in GMC, secure local regulatory approval and open corporate bank accounts through a coordinated process involving DK Bank, the city’s official banking partner. GMC officials said the model is designed to reduce repeated compliance procedures for firms that already operate under established regulatory systems overseas.

While DK Bank will continue carrying out standard Know Your Customer and Anti-Money Laundering checks, GMC board member and digital assets lead Jigdrel Singay told Cointelegraph that companies completing the licensing pathway are expected to gain banking access through the coordinated structure.

Existing licenses from other jurisdictions would only help simplify due diligence requirements rather than replace local oversight, Singay said. He added that firms seeking approval must still comply with GMC’s own regulatory standards and supervision process.

Unlike the European Union’s Markets in Crypto-Assets Regulation, which allows licensed firms to operate across member states, GMC said its framework does not function as a passporting system for offshore entities.

Tax incentives form another key part of the city’s pitch to crypto and fintech businesses. Under the framework, GMC offers targeted 0% corporate tax rates for selected sectors depending on investment commitments, alongside exemptions on capital gains, dividends and inheritance. Officials also said foreign employees may qualify for income tax benefits through 2030.

Singay told Cointelegraph the incentives are intended to attract companies establishing operational teams and creating local employment rather than entities focused mainly on profit relocation strategies.

Bitcoin reserve scrutiny continues

The licensing push comes as blockchain analytics firms continue tracking large Bitcoin movements tied to Bhutan-linked wallets this year.

Arkham Intelligence reported Tuesday that the Royal Government of Bhutan transferred 100.44 BTC worth roughly $8.2 million through three separate transactions to an unidentified wallet beginning with “bc1qn.” The analytics firm said the transfer pattern resembled earlier wallet activity connected to previous outflows.

Arkham also estimated that Bhutan-linked wallets have recorded more than $230 million in Bitcoin movements since the start of 2026, averaging nearly $50 million per month. According to the firm’s latest wallet data, Bhutan still controls around 3,119 BTC valued at approximately $252.3 million.

Earlier this year, analysts at Arkham and Onchain Lens flagged multiple Bhutan-linked transfers totaling nearly 700 BTC. Some of those transactions later interacted with wallets associated with Galaxy Digital and Singapore-based over-the-counter trading firm QCP Capital, according to reporting from Yahoo Finance, MEXC News, and Bitcoin.com.

Even so, Arkham noted that the latest transaction may not necessarily indicate an immediate sale because the funds moved from an older “3” format Bitcoin address into a newer SegWit-style “bc1q” wallet.

Responding to speculation surrounding the transfers, Singay told Cointelegraph that reports linking the movements to GMC reserve sales were “incorrect.” He said Bitcoin pledged under Bhutan’s “Bitcoin Development Pledge” remains part of the city’s strategic reserves.

Bhutan announced the pledge in late 2025, committing up to 10,000 BTC from sovereign reserves to support the long-term development of Gelephu Mindfulness City. At the time, officials said the Bitcoin would be held as a strategic reserve asset rather than liquidated.