Boom! Bhutan, this small country that has been mining $BTC for 8 years, has just opened a dedicated crypto bank. What are you waiting for?

Bhutan, a small country at the foot of the Himalayas with a population of less than a million, is doing something that could shake up the global financial landscape. They built a new city called Glepup Mindfulness City (GMC), and even established a bank—DK Bank—with the goal of providing formal services to crypto companies that are rejected by traditional financial institutions.

The CEO of DK Bank, Zheng YD, was very straightforward: “There is a long-standing huge gap in banking services for the crypto industry.” Why do traditional banks avoid crypto enterprises? The core issue is risk control. Cryptocurrencies originated from decentralized protocols, and their anonymous nature makes it difficult for most banks to effectively monitor them. Zheng YD said, “If they don’t understand how to do it, they simply avoid it.”

DK Bank is jointly regulated by the Royal Monetary Authority of Bhutan and is at the core of this financial experiment. GMC is designed as a special administrative region with independent governance rules. Jigdrel Singay, a director of the authority, called this model “one country, two systems”—with administrative, legislative, and judicial independence from Bhutan itself. Their target market is enormous: South Asia, with about 2 billion people, has no financial hub. Singay hopes GMC can become South Asia’s Hong Kong or Singapore.

In terms of business, DK Bank has differentiated itself. Most banks claiming to support cryptocurrencies only handle fiat currency transactions for crypto companies, with digital assets managed on external platforms. Zheng YD said, “These banks will tell you they won’t close your account, but all your crypto asset flows can’t go through their channels.” DK Bank’s approach is to connect fiat and crypto asset systems, offering integrated multi-currency accounts and crypto custody services. Users can manage stablecoins like $USDT, $USDC, and others within the same bank account, just like managing USD, GBP, or EUR. According to project disclosures, this account supports nine fiat currencies, along with $BTC collateralized loans and dual channels for fiat and digital asset deposits and withdrawals.

There are two main challenges to implementation. First, the underlying infrastructure: traditional banks operate on a nine-to-five weekday schedule, while the crypto market trades 24/7 in real time. Connecting these two systems requires significant technological upgrades. Second, intercepting malicious actors: Zheng YD does not shy away from industry chaos. “We never deny that illegal elements exist in the crypto industry,” he said. The GMC regulatory authority works with DK Bank to conduct risk screening at user onboarding, monitoring off-chain fund flows, tracking full on-chain activity, scanning wallet addresses, and verifying each transaction and counterparty.

Regarding the regulatory system, GMC was not built from scratch. Corporate governance adopts Singapore’s common law, and financial regulation is modeled after Abu Dhabi Global Market (ADGM). Both systems are among the world’s top standards and highly recognized by international investors. Companies with licenses in Singapore, ADGM, or Hong Kong can quickly establish operations through fast-track channels, simplifying procedures without lowering regulatory standards. Singay emphasized, “We do not welcome companies that are just shell corporations.” To enjoy the highest zero corporate income tax, they must meet real operational requirements: employing local Bhutanese staff, establishing physical offices, providing proof of daily operational expenses, and key personnel must pass regulatory qualification reviews.

Bhutan is not the only small sovereign country actively developing crypto infrastructure. Xin Yan, CEO of Sign, a sovereign crypto infrastructure company, said, “Governments are gatekeepers for all real-world business, data, and assets.” Governments worldwide are pragmatic in decision-making, not blindly chasing concepts; their core goal is to solve their own development problems. Currently, the global mainstream financial infrastructure is dominated by China and the US. If either country restricts cooperation, the financial systems of related nations could suffer shocks.

Neo, founder of the Swiss licensed on-chain new bank UR, pointed out a common industry flaw: “Many Web3 projects issuing USDC or launching payment cards call themselves digital banks, but their underlying architecture has no substantial change.” The Swiss Financial Market Supervisory Authority (FINMA) uses on-chain data for regulation, directly reading blockchain data to verify wallet addresses’ quarterly fund flows and holdings, determining compliance and issuing operating licenses. DK Bank employs a similar approach, monitoring on-chain wallet activity alongside fiat fund flows.

Bhutan’s crypto strategy is not a temporary move. Mining began in 2018, and nationwide large-scale mining started in 2019. Singay said, “Long before most countries understood $BTC, Bhutan had already deeply engaged with the crypto ecosystem.” However, both leaders refuse to rely solely on a single crypto asset for national development. When asked if they would launch a dog-themed token similar to Trump’s, Singay said their focus is on the institutional full industry chain: mining, custody, asset management, and primary brokerage. Retail speculation tokens are at least not a priority for Glepup City.

Someone asked how they would respond if $BTC crashes and remains stagnant for a long time. Zheng YD answered with a risk control mindset: “Banking requires pre-judging various risks; extreme market conditions can happen.” The solution is diversification: blockchain is the underlying technology, and $BTC is just one application. The focus is on Bitcoin, while also developing stablecoins, real asset tokenization, and other tracks.

The project has time constraints. The international airport, managed by Singapore Changi Airport’s operator, is designed by BIG architecture firm and is expected to be completed by December 2029; the digital nomad visa is still in testing. This city, emphasizing harmony between humans and nature, exempts foreign residents from personal income tax, with monthly rent only $400–$500. Currently, only complete planning blueprints and DK Bank’s operational landing are available.

Wojciech Kaszycki, founder of the digital asset company Mobilum, said, “Every country should establish a domestic digital asset reserve institution.” Zheng YD concluded with a personal story: “The first time I visited Bhutan, the entire capital had only one traffic light. People were courteous and orderly, waiting quietly in traffic without honking. In today’s increasingly chaotic global environment, this kind of tolerant restraint is exactly the trait the global financial industry urgently needs.”

Follow me: for more real-time analysis and insights into the crypto market! $BTC $ETH $SOL

#我的Gate交易时刻 #Wosh makes his debut on the Federal Reserve’s rate hold #Prediction World Cup Canada vs. Qatar