Access the latest regulatory frameworks, guidelines, and compliance requirements for financial institutions operating in Gelephu Mindfulness City.
The legislation governing financial services and virtual assets in GMC is the single omnibus Financial Services Act 2025 ("FSA"), and its subsidiary legislation termed "Rulebooks".
Within the FSA, refer to Schedule 1 Regulated Activities (from page 252 onwards) for the list and definition of regulated activities in GMC. Any firm wanting to carry out one or more of these regulated financial activities must obtain a Financial Services Licence from the GFSO.
The regulated activities can be carried out with respect to either traditional assets (e.g. securities) or virtual assets (e.g. spot cryptocurrencies).
The subsidiary legislation under FSA which apply in GMC are listed below. Firms licensed by the GFSO must comply with both FSA and these Rulebooks (as applicable):
For firms engaged in virtual asset (i.e. crypto) activities, they will also need to comply with additional Virtual Asset Guidance.
Latest Legislation
11 records
Sets out the GFSO whistleblowing framework, defining protected disclosures (suspected regulatory breaches, financial crime, unethical conduct) and requiring firms to provide secure, confidential reporting channels and protect whistleblowers from retaliation.
26 December 2024
PDFWhistleblowingGovernanceComplianceSets out prudential requirements for most authorised financial institutions in GMC (other than insurers, representative offices, and credit rating agencies), covering capital adequacy, credit/market/operational/interest-rate/group/liquidity risk, supervisory review, and disclosure.
26 December 2024
PDFEstablishes the regulatory framework for financial market infrastructure in GMC, defining rules, standards, and obligations for exchanges, clearing houses, and other recognised market bodies, covering governance, risk management, operational resilience, and market conduct.
26 December 2024
PDFMarket InfrastructureFinancial StabilityThe Glossary Rulebook (GLO) is a foundational rulebook issued by the GFSO of GMC. Rather than imposing regulatory obligations, it serves as the central repository of defined terms used across all GFSO rulebooks, ensuring that regulatory terminology is interpreted consistently.
26 December 2024
PDFGlossaryDefinitionsFor firms engaged in virtual asset activities, they will also need to comply with the Virtual Asset Guidance.
26 December 2024
PDFDigital AssetsVirtual AssetsGuidanceAll regulated firms are expected to adhere to the AML and Sanctions Rulebook to meet the AML regulatory expectations. In the AML and Sanctions Rulebook, it states clearly the definitions of ML and Sanctions, the responsibilities of the firms and Authorised Personnel in aspect of AML and Sanctions.
26 December 2024
PDFAML/CFTSanctionsComplianceEstablishes baseline regulatory requirements applying across all financial services firms in GMC, providing foundational standards on governance, conduct, authorization, supervision, and internal controls that complement activity-specific rulebooks like PRU, COBS, AML, and PIN.
26 December 2024
PDFGeneral RulebookGovernanceSets out the regulatory standards licensed financial firms must follow when dealing with clients, covering client classification, disclosure, suitability, conflicts of interest, and client asset handling, plus additional requirements for investment, deposit, credit, insurance and trust services.
26 December 2024
PDFConduct of BusinessClient ProtectionEstablishes the regulatory framework governing capital markets, securities offerings, listings, disclosure obligations, and market conduct within GMC, applying to issuers, listing applicants, listed entities, and other capital markets participants.
26 December 2024
PDFCapital MarketsSecuritiesDisclosureSets out the regulatory framework governing the financial soundness of insurance companies in GMC, covering capital adequacy, solvency, risk management, governance, and reporting requirements to protect policyholders.
26 December 2024
PDFInsurancePrudentialCapital AdequacyEstablishes the regulatory framework governing the management, operation, and marketing of investment funds in or from GMC, setting authorisation, governance, and compliance requirements for fund managers, custodians, and trustees, including prospectus disclosure rules.
26 December 2024
PDFFundsInvestment Management
