The International Monetary Fund published a technical assistance report reviewing and diagnosing Bhutan’s fintech regulatory sandbox framework, following a Monetary and Capital Markets Department mission requested by the Royal Monetary Authority of Bhutan, and set out reforms to strengthen its strategic direction, governance, resourcing and risk oversight. The mission, held in Thimphu from August 25 to September 2, 2025, included a two-day capacity development workshop on managing sandbox operations and fintech regulation, supervision and oversight. The assessment reviewed the sandbox’s alignment with Bhutan’s digital transformation goals, its ability to support financial innovation and the effectiveness of regulatory oversight, identifying unclear strategic objectives, fragmented governance structures, resource constraints and the absence of formal risk tolerance frameworks. Recommended actions included realigning the sandbox with the Royal Monetary Authority of Bhutan’s strategic priorities, narrowing its scope to regulated activities, reorganizing governance structures, establishing dedicated resources and developing comprehensive capacity-building programs.
International Monetary Fund 2026-02-20
International Monetary Fund diagnoses shortcomings in Bhutan’s fintech regulatory sandbox and urges refocus on regulated activities
The International Monetary Fund's report on Bhutan's fintech regulatory sandbox recommends reforms to enhance strategic direction, governance, resourcing, and risk oversight. It identified issues like unclear objectives, fragmented governance, and resource constraints. Suggested actions include aligning the sandbox with the Royal Monetary Authority of Bhutan's priorities and improving governance and capacity-building.