Bhutan’s 2025 Crypto Revolution: How the Himalayan Kingdom is Rewriting the Rulebook

Bhutan's regulators just dropped a bombshell—and crypto markets are scrambling to adjust. The Land of the Thunder Dragon is carving its own path with a regulatory framework that's equal parts progressive and pragmatic.

Here's what you need to know:

The Gross National Happiness Index meets blockchain

While Wall Street still debates proof-of-work vs. proof-of-stake, Bhutan's Financial Services Authority (FSA) took inspiration from an unlikely source: their famous happiness metric. The new rules prioritize sustainable mining practices and community impact over pure profit motives—a first in global crypto regulation.

Tax incentives that'll make Swiss banks blush

Zero capital gains tax for long-term holders? Check. Fast-track licenses for green mining operations? Double check. Bhutan isn't just opening the door to crypto—they're rolling out the red carpet (while somehow keeping their carbon-negative status intact).

The fine print that matters

Stablecoin issuers face stricter reserve requirements than traditional banks. DeFi protocols must maintain 'happiness impact statements.' And yes—there's a special Sandbox for projects integrating with Bhutan's digital ngultrum.

As one hedge fund manager grumbled: 'Turns out you can regulate crypto without killing innovation—who knew?' The Himalayan kingdom just schooled the SEC and FCA simultaneously. Your move, regulators.

Bhutan is one of the top countries with the most government-owned crypto in 2025. The country’s crypto outlook for this year is notably optimistic and strategic. It uses Bitcoin as a flexible treasury asset rather than merely a speculative holding. Bhutan has also launched innovative use cases to integrate crypto into its economy. 

Table of contents

• Crypto Regulations in Bhutan 2025
• What is the Government of Bhutan Saying about Crypto?
• Crypto License in Bhutan 2025 
• Crypto Tax in Bhutan 2025 
• Crypto Adoption in Bhutan in 2025 
• Government Crypto Holdings 
• Conclusion 
• FAQs

Crypto Regulations in Bhutan 2025

• Bhutan has become the first country to launch a national cryptocurrency tourism payment system, allowing travelers to pay for their travel expenses using over 100 cryptocurrencies.

• It partnered with Binance Pay and DK Bank, enabling hassle-free payments for airfare, lodging, visas, and local goods through the Binance application. 

• Tourists can pay with cryptocurrencies, instantly converted to Bhutanese Ngultrum, using QR codes for hotels, flights, shopping, and sightseeing.

• The Royal Monetary Authority of Bhutan (RMA) allows crypto mining and exchanges only for Gelephu Mindfulness City (GMC) registered entities and business partners.

• Under the GMC regulatory framework, it reaffirmed that on-ramping (converting local currency into crypto assets) through Bhutanese banks or financial institutions regulated by the RMA remains restricted. 

What is the Government of Bhutan Saying about Crypto?

As of 2025, the Bhutanese government is steadily moving towards crypto innovation. The government is exploring ways to mine and leverage green cryptocurrencies using hydropower to boost its economy and create jobs, the chief executive of its sovereign wealth fund said. 

The Royal Monetary Authority of Bhutan (RMA) is Bhutan’s central bank and primary financial regulator. It has adopted a pro-crypto strategy to engage with the evolving landscape of digital assets. It has three main goals with crypto: 

• Protecting citizens by minimizing risks in the digital assets space. 

• Maintaining financial stability by offering more jobs and eliminating unemployment.

• Supporting innovation with digital assets. 

Crypto License in Bhutan 2025 

Bhutan added a crypto licensing framework in the Crypto Tourism regulation. Only entities registered within the Gelephu Mindfulness City (GMC) framework can conduct crypto mining and exchanges.

The government restricts general cryptocurrency usage and trading through conventional banking channels, granting formal licenses only to GMC-registered platforms.

Crypto Tax in Bhutan 2025 

The government of Bhutan has not announced any specific crypto regime for crypto. 

The government has not clearly indicated a specific cryptocurrency tax regime, such as capital gains tax or income tax, on crypto transactions or holdings.

The only clear policy about crypto tax is that donating cryptocurrency is a non-taxable event, meaning you do not owe capital gains tax on the appreciated amount and can deduct it from your taxes. 

Crypto Adoption in Bhutan in 2025 

• The crypto penetration rate is 8.31% and will rise to 8.60% by 2026, with crypto users reaching 68.9K by next year.

• Crypto revenue: Current crypto revenue is US$129.8k, growing at a rate of 2.43% annually. By 2026, crypto revenue will increase by US$133.0k.

Government Crypto Holdings 

As of 2025, the government’s bitcoin holdings are 12,062 BTC, worth around $1.28 billion. Its primary source for accumulating BTC is utilizing renewable hydropower sources to power bitcoin mining operations, allowing the government to generate revenue. 

In August 2025, the Bhutan government moved 517 Bitcoin worth $59 million to a new wallet and still holds approximately 10,769 Bitcoin valued at $1.2 billion.

Conclusion 

Bhutan leverages its abundant hydroelectric power for green Bitcoin mining and holds significant Bitcoin reserves worth around 40% of its GDP.Despite adopting a modern and innovative framework, the country prioritizes consumer protection in the digital space. Bhutan is aiming for long-term economic stability and growth through cryptocurrency adoption.

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FAQs

Bhutan holds  ($1.28B), mined using green hydropower, representing ~40% of GDP. Recently moved 517 BTC ($59M) to a new wallet.

No specific crypto tax regime yet. , but capital gains/income taxes on trading remain unclarified as of 2025.

Yes! Bhutan actively supports crypto through green Bitcoin mining, a national crypto tourism payment system, and pro-innovation policies while prioritizing financial stability.