Finance and Digital Assets is the most developed of the Gelephu Mindfulness City's eight priority industries and the only one with a dedicated regulator. The Gelephu Financial Services Office licenses financial services and virtual asset activities under a single statute and operates rulebooks and an approved person regime that a new entrant must satisfy before it can trade. Basnet Law Pte. Ltd., the first law firm incorporated in the Gelephu Mindfulness City, advises banks, exchanges, custodians, token issuers, fund managers and payment firms under the Financial Services Act 2025 and the Income Tax Act 2025. This page explains what the framework provides and how we take a firm from expression of interest to licence.
How we help
- Perimeter analysis: whether the business carries on a regulated activity by way of business in GMC, and which exclusions apply.
- Financial Services Licence applications to the Gelephu Financial Services Office, from initial meeting through in-principle approval to the licence.
- Approved person applications for the senior executive officer, compliance officer, money laundering reporting officer and other controlled functions.
- Anti-money laundering, sanctions, conduct of business and prudential compliance programmes built to the rulebooks.
- Virtual asset structuring: exchanges, custody, fiat-referenced token issuance and tokenisation.
- Incorporation through the Gelephu Corporate Registration Office with a resident director, and bank account planning.
- Tax structuring around the 15% company rate, the strategic and development company route and the finance concessions in the Act.
What the GMC framework provides for finance and digital assets
The Financial Services Act 2025 creates the licensing perimeter. Carrying on a regulated activity by way of business in GMC requires a Financial Services Licence from the Gelephu Financial Services Office unless an exclusion or exemption applies, and the Act lists the activities individually: dealing, arranging, advising, custody, money services, operating a trading facility, managing assets, managing a collective investment fund and issuing a fiat-referenced token, which is licensable in its own right. Virtual assets, fiat-referenced tokens, spot commodities and environmental instruments are covered expressly, traditional finance and virtual assets sit under the same rulebooks, and no regulated activity may involve an algorithmic stablecoin token or a privacy token. Where a GMC statute is silent, the Application of Laws Act 2024 applies a schedule of financial services rules.
Licensing follows a published route: an initial meeting, a business model presentation, an application, review, in-principle approval with pre-conditions, and the licence once the firm is incorporated with a bank account, capital, office and staff in place; the regulator decides each grant. Capital requirements are set by the Gelephu Financial Services Office under its threshold conditions and prudential rulebook; the Act states no figures. Every licensed firm needs a senior executive officer, a compliance officer and a money laundering reporting officer, and controlled functions are filled by approved persons. A fast-track pathway announced in May 2026 accelerates review for firms already licensed in Singapore, Abu Dhabi Global Market or Hong Kong, but it is expressly not passporting: local review and supervision still apply.
The record is publicly available. Matrixport received a Financial Services Licence in September 2025. In December 2025 the gold-backed token TER launched on Solana under a sovereign framework with custody by DK Bank. In May 2026 BTSE Bhutan received in-principle approval for a multilateral trading facility for virtual assets and for custody, conditional on pre-conditions. In July 2026 3iQ Corp announced a partnership to manage a mandate backed by a portion of GMC's bitcoin reserves.
Incorporation is the first step. A licensed firm is usually a private company limited by shares registered through the Gelephu Corporate Registration Office with an empanelled corporate service provider and a director ordinarily resident in GMC. Account opening is a separate step with the banks and is planned alongside incorporation.
The Income Tax Act 2025 charges companies at 15% on chargeable income. The principal concession is approval as a strategic and development company at a rate of not less than 5%, by approval and closed to new approvals after 31 December 2030. The Act also provides finance concessions, including the finance and treasury centre rate, the qualifying debt securities concession, the approved insurance broker rate and the fund manager exemptions, and the fund manager approval window closes on 31 December 2029. Non-citizen individuals pay 0% on chargeable income derived on or before 31 December 2030.
Who this is for
- Exchanges, brokers and trading venues seeking a Financial Services Licence.
- Custodians, stablecoin issuers and tokenisation platforms.
- Fund managers, family offices and asset managers.
- Banks, payment and money services firms entering the pillar.
- Firms licensed in Singapore, Abu Dhabi Global Market or Hong Kong considering the fast-track pathway.
How an engagement runs
- Perimeter. We map the business model against the regulated activities and exclusions and record the analysis for the initial meeting.
- Entity. We incorporate through the GCRO portal with an empanelled corporate service provider and settle the resident director.
- Application. We prepare the licence application and approved person filings, present the business model and respond to review queries through to in-principle approval.
- Conditions. We build the compliance programme, appoint the mandatory officers and clear the pre-conditions until the licence issues.
- Tax and operations. We assess the strategic and development company case, plan for the finance concessions and support bank account opening.
Frequently asked questions
Which activities need a GFSO licence?
Any regulated activity carried on by way of business in GMC, including dealing, arranging, advising, custody, money services, operating a trading facility, managing assets or a fund and issuing a fiat-referenced token, unless an exclusion applies.
Does a Singapore, ADGM or Hong Kong licence transfer to GMC?
No. The fast-track pathway announced in May 2026 accelerates review for firms licensed in those centres, but it is expressly not passporting. Local review and supervision still apply.
Can a GMC financial firm issue a stablecoin?
Issuing a fiat-referenced token is licensable in its own right under the Financial Services Act 2025. No regulated activity may involve an algorithmic stablecoin token or a privacy token.
Which finance tax concessions does the Act provide?
The company rate is 15% and the strategic and development company route offers a rate of not less than 5%. The Act also provides the finance and treasury centre rate, the qualifying debt securities concession, the approved insurance broker rate and the fund manager exemptions.
Talk to GMC counsel on the ground
Basnet Law Pte. Ltd. is the first law firm incorporated in the Gelephu Mindfulness City. A short conversation early in a matter usually saves time and cost later. Write to basnet@basnetgmc.com or office@basnetgmc.com with a few lines about your plans, and we will tell you plainly what is needed, how long it takes, and whether we are the right fit.
You may contact Basnet Law at basnet@basnetgmc.com or office@basnetgmc.com for any legal queries related to GMC.
