Bhutan’s Gelephu Mindfulness City (GMC) is introducing a fast-track licensing system for crypto and fintech firms already regulated in financial hubs like Singapore, Hong Kong, and Abu Dhabi, as the Himalayan region seeks to establish itself as a major financial center in South Asia.
According to a Tuesday announcement shared with Cointelegraph, eligible companies will be able to incorporate, secure regulatory approval, and open a corporate bank account through a streamlined process coordinated with DK Bank, GMC’s official banking partner.
The initiative highlights increasing competition among emerging jurisdictions aiming to attract crypto businesses through simplified regulations, easier banking access, and favorable tax policies at a time when global regulators are tightening oversight and cautioning against regulatory arbitrage.
Although DK Bank will continue conducting standard Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, GMC board member and digital assets lead Jigdrel Singay told Cointelegraph that companies approved through the licensing pathway are expected to gain smoother access to banking services within the framework.
Singay emphasized that the program is not designed to provide offshore-style passporting rights. Instead, all firms must still comply with GMC’s own regulatory standards and licensing requirements.
He added that approvals from other jurisdictions mainly help simplify due diligence and reduce repetitive paperwork, while regulatory supervision remains fully under GMC’s authority rather than being delegated to foreign regulators. Singay contrasted the approach with the European Union’s Markets in Crypto-Assets (MiCA) regime, which allows licensed firms to operate across EU member states.
Tax incentives support GMC’s strategy
Tax advantages form another key part of GMC’s appeal. According to the release, the region offers targeted 0% corporate tax rates for priority industries based on investment size, along with a territorial tax framework modeled broadly after Singapore and Hong Kong.
GMC also provides exemptions on capital gains, dividends, and inheritance taxes as part of its effort to attract crypto and fintech investment.
Foreign workers operating in GMC may also qualify for income tax exemptions through 2030. Singay said the policy is intended to attract companies building genuine operations and creating jobs, rather than entities focused mainly on shifting profits for tax advantages.
Part of the project’s financial backing is tied to Bitcoin. In late 2025, Bhutan unveiled a “Bitcoin Development Pledge,” committing up to 10,000 BTC from its sovereign reserves to support the long-term development of Gelephu Mindfulness City. Officials previously stated that the Bitcoin would be maintained as a strategic reserve rather than liquidated.
However, several blockchain analytics firms reported this year that large Bitcoin outflows connected to Bhutan suggested the possibility of hundreds of millions of dollars in BTC sales. Those findings were based on wallet tracking and transaction heuristics, which are not conclusive proof of sales.
Singay rejected claims that GMC-related Bitcoin had been sold, calling the reports inaccurate and reiterating that the BTC remains part of the city’s strategic reserve holdings.
