Bhutan Compliance Report

Regulatory Overview

Regulatory Status

Regulators have not addressed crypto; legal status ambiguous

Primary Legislation

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Travel Rule

Not adopted

Tax Reporting

Cryptocurrencies are not explicitly illegal in Bhutan, and while they are not recognized as legal tender or regulated financial assets by the Royal Monetary Authority, certain digital assets are now formally recognized and regulated under the Gelephu Mindfulness City (GMC) special administrative region, which issues licenses for digital asset trading and custody services.. The RMA issued warnings about virtual asset risks prior to April 30, 2025, but on that date it updated its position to permit cryptocurrency trading under a regulatory framework, meaning the RMA now both warns and permits such activities.. **Bhutan's Income Tax Act 2000 (as amended) defines capital gains generally in relation to the sale of specific assets like shares and immovable property (land and buildings).**. **Cryptocurrencies are not explicitly listed as a capital asset.**. Capital gains from the sale of cryptocurrencies are generally subject to the 10% capital gains tax under Bhutan's existing tax code for 'property and other assets,' but Gelephu Mindfulness City (a special administrative region) offers a zero capital gains tax framework for regulated crypto firms operating under its fast-track licensing system.

Key Facts

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