In the southern plains of Bhutan, a special administrative region centered around mindfulness, sustainability and innovation is treading new crypto ground
On 8 Jan 2025, Bhutan’s new Special Administration Region (SAR) Gelephu Mindfulness City (GMC) announced its intention to recognize digital assets such as Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB) as part of its strategic reserves.
Located on the land bridge connecting the rapidly-growing economies of South Asia, GMC serves the more than two billion people in the region, and focuses on promoting and supporting the use of blockchain technology and innovating and pioneering new technologies.
The move makes GMC one of the first jurisdictions to officially hold digital assets as part of its strategic reserves. This is meant to enhance the SAR’s economic resilience as part of the SAR’s involvement in bitcoin mining.
For its strategic reserves, GMC has announced that intends to recognize digital assets that have large market capitalizations and deep liquidity. This is to ensure that the assets can be easily bought and sold with minimal price impact. In addition, GMC will look to recognize digital assets that are issued on more mature, secure blockchains that support monitoring of on-chain transactions.
The announcement follows the enactment of GMC Law No. 1 of 2024, or the “Application of Laws Act 2024” announced on 26 December 2024. The enacted set of laws for GMC included establishing the legal and regulatory framework in GMC for firms seeking to offer financial services involving digital assets. Coupled with policies recognizing digital assets such as BTC, ETH and BNB as part of GMC’s strategic reserves, the new strategy is intended to bolster the growth of the digital asset ecosystem in GMC “within a technologically progressive, yet well-regulated environment.”
It has also been announced that in March 2025, GMC expects to convene a high-level meeting in the Kingdom of Bhutan where senior government officials and industry leaders from across the world will discuss the recognition of digital assets as part of a jurisdiction’s strategic reserves, and also set up an international advisory panel on digital assets for GMC.