Turkmenistan just legalized crypto mining and exchanges this year, marking a sharp policy shift for one of the world’s most closed economies and fulfilling legislation that was accepted in November, 2025.
President Serdar Berdimuhamedov signed the Law on Virtual Assets, bringing digital assets under civil law for the first time. The legislation creates a licensing regime for miners, exchanges, and custodial services overseen by the Central Bank of Turkmenistan.
Cryptocurrencies will not yet be recognized as legal tender, currency, or securities. They cannot be used to pay for goods or services. The law defines virtual assets strictly as “property or investment instruments.”
The move stands out in a country known for tight state control. Turkmenistan maintains strict internet censorship and limited access to foreign platforms. Entry rules for foreigners have long been among the world’s toughest.
The government says the law is meant to support economic development and attract foreign capital. Turkmenistan’s economy depends heavily on natural gas exports. China is its main buyer.
Authorities are also advancing a pipeline project linking Turkmenistan to Afghanistan, Pakistan, and India.
Turkmenistan’s new crypto rules
Under the new framework, both individuals and companies may mine cryptocurrencies. All miners must register with the central bank and meet technical standards. Covert mining practices, including cryptojacking, are banned.
Crypto exchanges and custodians are also permitted to operate with a license. Domestic and foreign entities may own these services, except firms linked to offshore jurisdictions.
Exchanges must enforce know-your-customer and anti–money laundering rules. Anonymous wallets and transactions are prohibited.
The law divides virtual assets into secured and unsecured categories. Secured assets are backed by underlying property. Unsecured assets include bitcoin and similar tokens. None carry payment status under Turkmen law.
Supervision will extend beyond the central bank. The Cabinet of Ministers and the Ministry of Finance and Economy will monitor compliance. Regulators retain the power to suspend or revoke licenses for violations.
The legislation passed parliament in November and came into force on January 1, 2026. It follows earlier steps toward limited digital opening. Turkmenistan introduced an electronic visa system last year to ease entry for foreigners.
Central Asia has emerged as a testing ground for crypto policy. Kazakhstan became a major bitcoin mining hub after China’s 2021 crackdown. Kazakhstan said they are preparing to establish a national cryptocurrency reserve fund worth between $500 million and $1 billion
Pakistan launched a national virtual assets authority in 2025.
Turkmenistan remains one of the least visited countries in the world. Its media environment is tightly managed. Internet access is limited.
Credit: Source link
