Zach Anderson
May 12, 2026 10:44
Bhutan’s Gelephu Mindfulness City accelerates crypto firm licensing and banking access while offering zero-tax incentives to attract global players.
Gelephu Mindfulness City (GMC) in Bhutan is positioning itself as a competitive hub for crypto and fintech firms by offering expedited licensing, streamlined banking access, and zero-tax incentives. The initiative targets companies already regulated in jurisdictions like Singapore, Hong Kong, and Abu Dhabi, aiming to attract long-term operations in the South Asian region.
According to a statement shared with Cointelegraph, GMC’s framework enables qualified firms to incorporate locally, obtain authorization from regulators, and open corporate bank accounts through a coordinated process with DK Bank, GMC’s official banking partner. While the process is streamlined, standard Know Your Customer (KYC) and Anti-Money Laundering (AML) checks remain in place.
Jigdrel Singay, a GMC board member and lead for digital assets and fintech, clarified that companies must comply with local regulations. “This is not a passport for offshore licenses,” he noted, emphasizing that approvals from other jurisdictions primarily expedite due diligence rather than serve as substitutes for GMC’s regulatory oversight.
Zero-Tax Incentives and Bitcoin Support
One of GMC’s most attractive features is its tax structure. The city offers 0% corporate tax for priority sectors based on investment levels, along with exemptions on capital gains, dividends, and inheritance. The framework is aligned with tax-friendly jurisdictions like Singapore and Hong Kong. Additionally, foreign employees may qualify for income tax breaks through 2030, an effort to foster real economic activity and job creation rather than profit-shifting schemes.
Backing this initiative is Bhutan’s sovereign Bitcoin (BTC) reserve. In 2025, the country pledged up to 10,000 BTC to support GMC’s development as part of its “Bitcoin Development Pledge.” While blockchain analytics firms have flagged large BTC outflows linked to Bhutan, Singay dismissed these reports, stating that Bitcoin remains part of the city’s strategic reserves.
This move underscores Bhutan’s ambition to carve out a niche in the increasingly competitive race among jurisdictions to attract crypto firms. With global regulators tightening oversight, jurisdictions like Gelephu are leveraging tax incentives, streamlined licensing, and infrastructure support to appeal to companies seeking stable and efficient operational bases.
For crypto firms navigating tightening regulations in traditional hubs, Gelephu’s offer of zero-tax incentives and expedited processes could be a compelling proposition, particularly as it ramps up its efforts to become a South Asian financial center.
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