Bhutan is actively developing its cryptocurrency industry, leveraging hydropower advantages. This article examines the current state of the market and taxation.
Cryptocurrency Potential of Bhutan
In recent years, Bhutan has leveraged its hydropower advantages to establish Bitcoin mining operations. As of June 27, 2025, Bhutan holds 12,062 Bitcoins, which accounts for about 40% of its GDP, making it the third-largest sovereign holder of Bitcoins in the world. In July 2025, Bhutan rolled out a nationwide cryptocurrency payment system, allowing tourists to pay for visas, flights, and local goods using cryptocurrency.
Cryptocurrency Taxation in Bhutan
While Bhutan is actively developing its cryptocurrency sector, its tax system is still in the process of formation. There are no specific tax laws for cryptocurrencies, and all forms of transactions involving them may be subject to existing taxes. For example, income from mining or trading could incur income tax, although specific details remain quite vague.
Regulation of the Crypto Industry in Bhutan
The Royal Monetary Authority of Bhutan is responsible for cryptocurrency regulation, starting in 2019. In 2025, the authority confirmed that companies engaged in cryptocurrency must adhere to strict compliance rules. Measures are being taken in the country to protect investors and comply with international standards, despite trading restrictions on cryptocurrency businesses.
In conclusion, Bhutan is taking promising steps in developing its cryptocurrency sector, but there remains much uncertainty surrounding taxation and regulation. The future will depend on adaptations in tax policy and further developments in the regulatory environment.
