Bhutan: Review and Diagnostic of the Fintech Regulatory Sandbox Framework

This report summarizes the International Monetary Fund's (IMF) technical assistance mission to the Royal Monetary Authority of Bhutan (RMA), focused on reviewing and strengthening the fintech regulatory sandbox (RS) framework. The mission, conducted from August 25 to September 2, 2025, assessed the RS's alignment with Bhutan's digital transformation goals, its capacity to foster financial innovation, and its effectiveness in regulatory oversight. The mission identified critical challenges including unclear strategic objectives, fragmented governance structures, resource constraints, and the absence of formal risk tolerance frameworks. The report recommended realigning the RS with RMA's strategic priorities, narrowing its scope to regulated activities, reorganizing governance structures, establishing dedicated resources, and developing comprehensive capacity-building programs to enhance Bhutan's fintech ecosystem.