Turkmenistan Legalizes Crypto Mining Under State Control

Turkmenistan has formally legalized cryptocurrency mining and exchanges, marking a significant policy shift for one of the world's most closed economies. President Serdar Berdimuhamedov signed the Law on Virtual Assets, which took effect on January 1, 2026.

The legislation creates a comprehensive licensing regime for miners, exchanges, and custodial services, all overseen by the Central Bank of Turkmenistan. Despite this legalization, cryptocurrencies will not be recognized as legal tender, currency, or securities. They cannot be used for payments for goods or services. The law strictly defines virtual assets as 'property or investment instruments.' This move aims to support economic development and attract foreign capital while maintaining tight state control over the digital asset sector.

The new legislation represents a sharp pivot for the nation known for its strict internet censorship and limited access to foreign platforms. President Serdar Berdimuhamedov signed the Law on Virtual Assets, bringing digital assets under civil law for the first time in the country's history.

The law was accepted in November 2025 and officially came into force on January 1, 2026. It follows earlier steps toward limited digital opening, such as the introduction of an electronic visa system last year to ease entry for foreigners. The government states that the law is intended to support economic development and attract foreign capital.

Under the new framework, the legislation divides virtual assets into two distinct categories:

• Secured assets: Backed by underlying property
• Unsecured assets: Includes Bitcoin and similar tokens

None of these assets carry payment status under Turkmen law. The move stands out in a country that maintains strict entry rules for foreigners and a tightly managed media environment.

The framework establishes strict requirements for all crypto-related activities. Both individuals and companies are permitted to mine cryptocurrencies, but they must register with the central bank and meet specific technical standards.

Covert mining practices, including cryptojacking, are explicitly banned. The law also permits crypto exchanges and custodians to operate, provided they obtain a license. Domestic and foreign entities may own these services, with the exception of firms linked to offshore jurisdictions.

Strict compliance measures are mandated for exchanges:

• Enforcement of know-your-customer (KYC) rules
• Implementation of anti-money laundering (AML) protocols
• Prohibition of anonymous wallets and transactions

Supervision extends beyond the Central Bank. The Cabinet of Ministers and the Ministry of Finance and Economy will also monitor compliance. Regulators retain the power to suspend or revoke licenses for violations.

Turkmenistan's economy depends heavily on natural gas exports, with China serving as the main buyer. The government is also advancing a pipeline project linking Turkmenistan to Afghanistan, Pakistan, and India. The legalization of crypto assets is viewed as a strategic move to diversify economic engagement and attract capital.

Central Asia has emerged as a significant testing ground for cryptocurrency policy. Following China's 2021 crackdown on crypto mining, Kazakhstan became a major Bitcoin mining hub. Recently, Kazakhstan announced plans to establish a national cryptocurrency reserve fund worth between $500 million and $1 billion. Meanwhile, Pakistan launched a national virtual assets authority in 2025.

Turkmenistan remains one of the least visited countries in the world, characterized by a tightly managed media environment and limited internet access. The introduction of regulated crypto mining and exchanges marks a notable development in the nation's digital economic policy.

Is cryptocurrency legal in Turkmenistan?
Yes. Turkmenistan has legalized cryptocurrency mining and exchanges under the Law on Virtual Assets. However, cryptocurrencies are not recognized as legal tender and cannot be used to pay for goods or services. They are defined strictly as property or investment instruments.

Who regulates the crypto industry in Turkmenistan?
The industry is primarily overseen by the Central Bank of Turkmenistan. However, supervision also involves the Cabinet of Ministers and the Ministry of Finance and Economy, which monitor compliance and have the power to suspend or revoke licenses.

What are the requirements for mining?
Both individuals and companies may mine cryptocurrencies, but they must register with the central bank and meet technical standards. Covert mining practices, such as cryptojacking, are banned.