Bhutan, a small Himalayan nation, is grabbing attention with its bold moves in digital money. It holds 12,062 Bitcoins, collected since 2020, ranking it as the world’s third-largest country owning Bitcoin. This stash is worth about 40% of Bhutan’s economy, or GDP. Using clean hydropower, Bhutan mines Bitcoin in an eco-friendly way. In July 2025, it launched a system for tourists to pay for visas, flights, and local goods with cryptocurrencies, making travel and shopping smoother with digital coins.
Bhutan views crypto as an asset, not regular money, and regulates it carefully. In Gelephu Mindfulness City, a special area, there are plans to add Bitcoin, Ethereum, and Binance Coin to local reserves. Unlike some countries that make crypto their main currency, Bhutan keeps its own money, the Ngultrum, as the primary tender.
Bhutan’s Clear Tax System for Crypto
Bhutan’s taxes are straightforward. Personal income tax ranges from 0% to 30% for anyone earning over 300,000 Ngultrum a year. Businesses pay a 22% corporate income tax, reduced from 30% to attract investment. A 7% sales tax applies to most goods and services, but a 5% Goods and Services Tax (GST) will replace it in January 2026 to simplify the system.
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There are no specific tax rules for crypto yet. Earnings from mining, trading, or using crypto for payments may be taxed as income under categories like investment or other sources. Individuals might pay personal income tax on profits, while crypto businesses face the 22% corporate tax. Selling crypto could trigger capital gains tax if treated as property, but details remain unclear. The new GST doesn’t address crypto directly, leaving its taxation vague.
Compared to a nearby country with a flat 30% crypto tax and no loss deductions, Bhutan’s system is kinder, allowing some cost deductions. Unlike nations offering tax breaks to attract crypto users, Bhutan focuses on practical uses, with over 1,000 shops accepting digital payments.
Rules to Keep Crypto Safe
The Royal Monetary Authority oversees crypto in Bhutan. In 2019, it started a test program for safe crypto mining, requiring companies to follow know-your-customer and anti-money laundering rules. Mining firms need approvals to ensure they operate legally and safely.
In 2024, Bhutan introduced stricter rules. Crypto businesses must obtain licenses and inform people about investment risks to protect users. A May 2025 notice limited mining and trading to registered companies in Gelephu Mindfulness City. Regular banks cannot handle crypto transactions, ensuring a secure financial system while supporting innovation. These rules align with global standards to prevent financial crimes.
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How Bhutan’s Crypto Approach Stands Out
Other countries take different paths with crypto. One nation uses Bitcoin as its official currency for all purchases, unlike Bhutan, which keeps its currency separate. Some places rely on private companies to drive crypto growth, but government bodies lead the efforts locally. While large economies aim to become global crypto hubs, the focus is on supporting local goals, such as boosting tourism through crypto payments.
Bhutan’s approach is unique. It ranks third globally in Bitcoin holdings. Its green mining uses hydropower, protecting the environment. Tourists can pay with crypto, supporting local shops. Taxes apply existing rules, keeping things simple but not fully defined. Crypto businesses pay standard corporate taxes, and individuals may owe income tax on gains.
Regulations emphasize safety. The 2019 program tests mining carefully, 2024 rules require licenses, and 2025 limits control who can participate. Bhutan balances new technology with caution, using clean energy and building reserves. Over 1,000 shops now accept crypto, helping the economy grow. Taxes remain fair, with progressive rates for individuals and lower rates for businesses. Bhutan’s system shows how a small nation tackles big tech changes while staying true to its values.