Bhutan's Gelephu Mindfulness City has launched a formal licensing framework for crypto and fintech firms that combines regulatory approval and corporate banking access into a single application, as the kingdom's purpose-built special administrative region makes its first moves to attract exchange and infrastructure operators.
BTSE Bhutan, a subsidiary of the crypto exchange BTSE, received an in-principle approval from the Gelephu Financial Services Office to obtain a Financial Services License covering two regulated activities: operating a multilateral trading facility for virtual assets and providing institutional-grade custody services. The approval is a preliminary milestone; the final license remains subject to BTSE Bhutan satisfying outstanding pre-conditions to the GFSO's satisfaction before it can commence regulated operations.
The approvals arrive as GMC formalises what it is offering to international firms. The framework addresses a problem that has frustrated crypto companies in other jurisdictions: receiving a license and then spending months unable to open a corporate bank account. Under GMC's model, regulatory approval and banking access through DK Bank are processed together. Companies approved under the framework gain multi-currency accounts across nine currencies and access to digital asset services including BTC-backed lending and fiat-to-crypto infrastructure.
Firms already licensed in Singapore, the Abu Dhabi Global Market, or Hong Kong qualify for an expedited review, compressing the time between application and operational readiness. "If a company has already demonstrated credibility in leading jurisdictions, we recognise that and enable them to move faster," said Jigdrel Singay, GMC's digital assets and fintech lead.
The tax structure adds further incentive: GMC offers 0% corporate tax for priority sectors, capital gains and dividend exemptions, and income tax relief for foreign employees through 2030. The region uses a Variable Capital Company structure modelled on Singapore's.
Bhutan has been building toward this. In December 2025, the government committed 10,000 BTC toward GMC's development, and blockchain analytics firm Nansen announced in February 2026 that it would establish a presence in the SAR. BTSE Bhutan's in-principle approval is the first exchange-level regulatory milestone to emerge from GMC's licensing pipeline.
"Our sole focus is on building a robust, fully compliant virtual asset ecosystem here in Bhutan," said Yew Chong Quak, CEO of BTSE Bhutan.
BTSE, the parent exchange, was founded in 2018 and raised a $22 million Series A in 2021, with backing from Jump Crypto and Lemniscap. It operates across 300-plus assets with trading and custody infrastructure primarily oriented toward institutional clients.
