Turkmenistan, long among the world’s most tightly controlled economies, has officially legalized cryptocurrency mining and the operation of crypto exchanges under a new legal framework that took effect on January 1, 2026. The landmark move is aimed at boosting the economy and attracting foreign investment, marking a notable departure from years of strict digital asset restrictions.
Under the Law on Virtual Assets, signed last November by President Serdar Berdimuhamedov, cryptocurrency mining and exchange activities are now legally recognised, but only through a regulated, state‑controlled system. The legislation places virtual asset operations under civil law and introduces a licensing regime overseen by the Central Bank of Turkmenistan, with additional supervision by the Cabinet of Ministers and other authorities.
Crypto mining is permitted for both individual entrepreneurs and corporate operators, provided they register with the central bank and comply with licensing requirements. Exchanges must also obtain official approval, implement know‑your‑customer (KYC) and anti‑money‑laundering (AML) protocols, and adhere to operational standards before they can function legally. Covert or unlicensed mining and exchange activity remains prohibited and subject to penalties.
Despite the historic step toward opening its digital asset sector, Turkmenistan is maintaining tight controls. Cryptocurrencies are not recognised as legal tender, currency, securities, or means of payment within the country, meaning they cannot be used for everyday transactions such as buying goods or services. Instead, digital assets are treated as property that may be legally owned, traded or stored within the regulated environment.
The move is seen as part of a broader economic diversification strategy for a nation heavily reliant on natural gas exports, especially to China and other regional partners. By leveraging its abundant energy resources and relatively low electricity costs, Turkmenistan is positioning itself as a potential destination for cryptocurrency mining investment, similar to neighbours like Uzbekistan and Kazakhstan, which have also moved toward clearer digital asset frameworks.
However, the shift does not equate to full financial openness. The internet remains tightly controlled, with limited penetration and ongoing censorship, and the government retains significant authority over how digital asset activities unfold. Observers note that this legalisation reflects a cautious approach to integrating crypto into the economy without ceding control of monetary policy or broader financial stability.
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