The Bhutanese Leading the way.
During the meet-the-press The Bhutanese asked the Home Ministry (MoHA), Ministry of Finance (MoF), and Ministry of Industry Commerce and Employment (MoICE) on how they plan to tackle increasingly complex scams spreading much faster, especially through social media, with the latest being crypto-based scams.
The paper asked that while various regulatory and law and order bodies act when complaints are made, many victims feel there is a more proactive approach needed by various regulatory bodies cutting across agencies as these scams openly advertise on social media or spread their business online under the garb of legality and non-prosecution from regulators. Some are caught and fined but still continue showing inadequacy of the penalty and lack of adequate follow-up and monitoring.
MoF
The Finance Minister ,Lekey Dorji, acknowledged the growing complexity and digital spread of scams, particularly those exploiting social media and pseudo-legal fronts.
He said tackling this challenge demands a proactive, coordinated approach across regulatory bodies.
“We are enhancing inter-agency collaboration, especially with the Royal Monetary Authority and the Department of Law and Order, to build an integrated framework for realtime data sharing, joint enforcement, and digital surveillance to detect and disrupt scams early.”
Lyonpo said existing penalties are under review to ensure they are a deterrent and enforceable.
Where needed, legal amendments will be proposed to enable preemptive action against suspicious activities, even before formal complaints arise.
He said public awareness remains critical. They are expanding financial literacy efforts with schools, local governments, and civil society to help citizens identify and report fraudulent schemes.
“In response to crypto-based scams, we are assessing the need for a dedicated regulatory framework for digital assets, including licensing, transparency, and consumer protection measures. This issue is not just about enforcement, it is a governance priority,” said Lyonpo.
He said the Ministry is committed to safeguarding citizens, fostering responsible innovation, and maintaining public trust through continued dialogue and decisive action.
MoHA
The Acting Director of the Department Law and Order, Karma Dorji, said there are various scams being operated in the country.
He said these scams are Bogus investment and trading schemes, Pyramid schemes, Rental add-based security deposit scam, Fake online shopping, Fake delivery of gifts, Online gambling, Currency exchange scam, Bogus job ads with the intention of trafficking humans, Visa scam, and Cryptocurrency scam.
He said the Royal Bhutan Police dealt with more than 235 cases, more than 156 in the year 2024 and more than 79 in the year 2025.
The DLO interventions include issuing a public awareness video on pyramid schemes and posting it on Facebook, TikTok and BBS, a series of public notifications on these scams, awareness through BBS TV and BBS radio by organising a panel discussion, a TikTok Live session with the aim of creating awareness on various scams on 26th October 2025.
They have frozen accounts of about 700 individuals involved in online gambling and 17 repeat offenders are being investigated by the police.
The MoHA proposed to the National Council for legal review to strengthen the provisions and penal sanctions concerning these, internet-enabled, social menaces such as pyramid schemes and gambling activities.
Out of Nu 26 million monetary losses incurred through various scams, the Thimphu police Division recovered over Nu 11 million and returned it to the victims
MoHA had a series of inter-stakeholder consultation meetings with the aim of strengthening inter-agency coordination and collaborations, and put in place mechanisms to address the issue.
Mobile numbers are removed from the bank accounts before they are recycled, BICMA will take it up with the cellular companies to retain the deactivated SIM cards for 2 years before it is recycled, Mobile numbers used by foreign construction workers are deactivated as soon as the work permit expires to avoid possible misuse for scamming activities.
RBP is to deal with the cryptocurrency-related scamming activities, BQPCA will deal with the cases of unauthorised training and mentorship programmes, BICMA will review the number of SIM cards being issued to people to prevent being misuse and take up with the cellular companies to address the possible hacking of Bhutanese mobile numbers.
Banks will execute real-time freezing of accounts for the successful recovery of scammed money and monitor bank accounts being used for illegal activities such as pyramid schemes, bogus trading and investment schemes and online gambling
FID, RMA will strengthen the Suspicious Transaction Reporting mechanism
MoICE
The MoICE Minister Namgyal Dorji agreed that crypto-based scams are becoming more sophisticated, often hiding behind social media and private networks, which makes early detection difficult.
He said under the Consumer Protection Act 2012, such schemes are illegal and so the Consumer Competition and Affairs Authority (CCAA) investigates each case to confirm if it meets the legal definition of a pyramid scheme.
Once verified, penalties are imposed and operations suspended, as in the cases of Ripple Investment, OctaFX, Forex Guru, Enveer, and Phone Pay.
Lyonpo said beyond enforcement, the CCAA is ramping up public awareness through media campaigns and advisories, because prevention begins with informed consumers.
Despite repeated warnings, participation persists – making vigilance and early reporting crucial.
He said given the cross-cutting nature of these scams, agencies including the CCAA, RMA, RBP, and BQPCA are now working more closely through joint investigations and a developing early-warning system for better surveillance and response.
“More broadly, the government acknowledges that cryptocurrency and digital asset regulation remain an emerging area globally. We are therefore reviewing how to strengthen national oversight, clarify mandates, and protect consumers in this evolving space,” said Lyonpo.
He said everything cannot be guaranteed by regulations, it’s prudent for all to be cautious, verify before investing, and avoid any scheme that promises quick or guaranteed returns.
PandoraBiz
In response to a separate question on PandoraBiz the MoICE Lyonpo said it was investigated by CCAA in 2023 following allegations of operating a pyramid scheme. After a detailed inquiry, there was insufficient evidence to prove it met the legal definition of a pyramid scheme under the Consumer Protection Act 2012.
The investigation found that PandoraBiz was offering paid training on cryptocurrency mining and trading, rather than recruitment-based activities typical of pyramid schemes. However, since this involved cryptocurrency, which falls under the Royal Monetary Authority (RMA), and training, which is the mandate of the Bhutan Qualifications and Professional Certification Authority (BQPCA), the matter was referred to both agencies for appropriate action.
Recently, the CCAA received around 40 new complaints against the proprietor of PandoraBiz regarding unpaid returns from mentorship or investment programs. This is being treated as a new case, and a fresh investigation is underway. Legal action will follow once the facts are established.
Lyonpo said cryptocurrency and digital assets remain an emerging regulatory area globally, and Bhutan is no exception. “Oversight currently rests with the RMA, but we recognise the need to strengthen policy and coordination frameworks to better protect consumers from crypto-based frauds,” said Lyonpo.
Lyonpo said the government strongly urges the public to exercise caution, verify legitimacy before investing, and avoid any scheme that promises unrealistic or guaranteed returns.
