The Bhutanese Leading the way.
The unfolding PandoraBiz SRC case has become a textbook example of how slow and reactive regulation can enable fraudsters to thrive, and how ordinary Bhutanese citizens are left to pay the price.
The tragedy is not only that so many fell for it, but that regulators knew about Sandeep’s activities as far back as 2023. Despite repeated warnings and even fines, PandorBiz and Sandeep continued to operate openly on social media.
To be fair, Bhutan’s regulatory agencies face structural constraints. Cryptocurrency remains a gray area which is neither fully banned nor clearly regulated leaving the Royal Monetary Authority to tread cautiously. The CCAA and BQPCA have limited legal teeth beyond consumer protection and training certification. Yet, none of these justify the continued inaction once credible red flags were raised.
When there is a circular restricting crypto-related activity to Gelephu Mindfulness City action must be taken for those acting outside it and especially when people are getting defrauded.
When agencies ‘discuss what to do’ long after victims lose their savings, it erodes trust in institutions meant to protect the public. The burden of vigilance should not rest solely on victims or whistleblowers who dare to speak out but it should rest squarely on those tasked with regulation.
What this case exposes is not merely the loopholes in our laws, but a deeper weakness in regulatory coordination and enforcement. Bhutan’s regulators are often excellent at drafting guidelines and forming committees, but far slower at taking real-world action until the damage is done. This must change.
A proactive regulator is one that anticipates risks, monitors emerging scams, and acts early, not after the press reports, or after 28 complaints pile up. It means developing real-time intelligence on online schemes, coordinating across agencies without bureaucratic delay, and exercising the full extent of existing laws, even when the technology is new or the jurisdiction seems unclear.
The public deserves regulators that protect, not just react. The PandoraBiz case must serve as a turning point and not another chapter in a growing list of preventable scams.
A regulator is supposed to create and enforce a standard.
Travis Kalanick