Bhutan’s Gelephu zone gains central bank cleared for crypto
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Bhutan has established a central bank for its Gelephu Mindfulness City (GMC) that is allowed to hold digital and crypto assets in its reserves, according to Crypto Briefing. A Royal Decree from King Jigme Khesar Namgyel Wangchuck converted the Gelephu Financial Services Office (GFSO) into the autonomous Gelephu Central Bank (GCB), giving the special administrative region in southern Bhutan a monetary authority with a reserve mandate that extends beyond traditional holdings.
The shift was listed in a November 2 announcement by GMC and reported by Bhutan’s public broadcaster BBS, crypto.news reported. The decree gives the bank monetary policy authority, foreign reserve oversight and supervision of financial institutions operating inside the city’s borders.
Key facts
- King Jigme Khesar Namgyel Wangchuck signed the decree on November 1-2, 2026, turning the GFSO into the Gelephu Central Bank.
- The bank may invest in digital and crypto assets as part of its reserves, but the permission is optional rather than a mandate.
- The decree also covers payment and settlement systems, liquidity support and development of money and capital markets, per BBS’s account cited by crypto.news.
- GMC received a pledge of up to 10,000 BTC from Bhutan’s national holdings in December 2025.
- GMC is recruiting more than 50 professionals for roles spanning virtual asset supervision, anti-money laundering, banking operations, technology, regulatory policy and macroeconomics.
A currency pathway, still subject to royal approval
The decree sets out a route for GMC to introduce its own currency, potentially in digital form. That step would need the King’s concurrence and no timeline has been attached, so it is a possibility rather than a plan in motion.
The zone occupies more than 4,046 square kilometers in southern Bhutan, bordering India’s Assam state, and describes itself as operating under a “One Country, Two Systems” framework with separate executive, legislative and judicial powers. It was established by Royal Charter in February 2024.
Reserve plans predate the bank
GMC’s crypto reserve policy came before the central bank. In January 2025 it named Bitcoin, Ether and BNB among assets it intended to recognize as strategic reserves, favoring large market capitalizations, sufficient liquidity and mature blockchains that allow on-chain monitoring. The December 2025 Bitcoin pledge followed, tying the country’s hydroelectric-powered mining to job creation and technical skills; GMC has described its reserve as accumulated by converting surplus hydropower into digital assets.
In July, GMC appointed Canadian digital asset manager 3iQ to run a dedicated mandate backed by an undisclosed portion of its Bitcoin treasury, a deal that connected GMC to Nasdaq-listed Coincheck Group after its February acquisition of a 99.8% beneficial interest in 3iQ. In an August 6 interview published by 3iQ, chief strategy officer Matteo Dante Perruccio described the firm’s obligation as protecting the assets and helping accumulate more Bitcoin for deployment into the project and GMC’s development. Neither report specified how much Bitcoin was assigned.
Licensed operators already include BTSE Bhutan, authorized for a multilateral trading facility and custody, while the regulator’s public directory lists custody permissions for Matrix Gelephu, DK and Ceffu Digital. GFSO guidance places traditional and virtual asset activity under the same Financial Services Act 2025 and supporting rulebooks.
Why it matters
A central bank, even one confined to a single special zone, now holds formal permission to treat crypto as a reserve asset — a step most monetary authorities have avoided. For digital asset firms weighing where to base regulated activity, GMC now offers a licensing regime, named operators, a growing supervisory team and a reserve authority that speaks the same language. Bhutan’s holdings also differ in origin from those of governments whose Bitcoin comes from seizures, since they are mined from surplus hydropower.
What to watch
The concrete markers are disclosures: whether GCB publishes any digital asset holdings, whether royal approval for a currency materializes, and whether more licensed firms follow BTSE Bhutan into the zone. The size of any crypto allocation is unknown because the authority is optional.
Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.
Sources: Crypto Briefing, crypto.news
