Bhutan’s Gelephu Mindfulness City (GMC) has unveiled a combined licensing and banking framework for crypto and fintech firms, directly challenging established Asian financial hubs like Singapore and Hong Kong. According to CoinTelegraph, companies already regulated in Singapore, Hong Kong, or Abu Dhabi can apply for a GMC license, incorporate locally, and open a corporate bank account through a single coordinated process with DK Bank, GMC’s official banking partner, with account access granted upon approval.
No Regulatory Passport, Local Authority Retained
Jigdrel Singay, a GMC board member and digital assets and fintech lead, stressed the arrangement does not constitute a regulatory passport. Prior approvals in those jurisdictions primarily reduce duplicated paperwork and streamline due diligence, but GMC retains full supervisory authority. Standard KYC and AML checks still apply.
DK Bank plans to offer multi-currency accounts across nine currencies and intends to extend digital asset services including BTC-backed lending and fiat-to-crypto infrastructure. Singay said the stated goal is to attract firms building substantive local operations, not profit-shifting structures.
Zero Corporate Tax, Exemptions Through 2030
GMC’s pitch includes generous tax incentives: 0% corporate tax for priority sectors, capital gains and dividend exemptions, and income tax relief for foreign employees running through 2030. This contrasts with the EU’s Markets in Crypto-Assets Regulation (MiCA), which allows a licensed firm to operate across the entire bloc — an arrangement GMC explicitly does not replicate.
The framework emerges as emerging jurisdictions race to attract crypto firms with streamlined licensing and banking access, while regulators in more established markets tighten oversight and push back against regulatory arbitrage.
10,000 BTC Sovereign Reserve Anchors City Development
GMC’s development strategy is tied to Bhutan’s Bitcoin reserve. In late 2025, Bhutan committed up to 10,000 BTC from sovereign holdings toward the city’s long-term build-out, framing the assets as a yield-generating reserve rather than a fund to be liquidated. Earlier this year, blockchain analytics firms flagged large BTC outflows from addresses linked to Bhutan, but Singay denied any sales, saying the reserve remains intact.
Institutional interest is growing: Nansen, a blockchain analytics platform, announced plans in February 2026 to incorporate a local entity and hire in the city. Bhutan’s Bitcoin Development Pledge positions the 10,000 BTC as both a reserve delegation and an active yield instrument for GMC’s infrastructure, signaling that the territory views its crypto holdings as a long-term financial foundation, not a short-term fundraising tool.