Turkmenistan Legalizes Cryptocurrency
As of January 1, Turkmenistan has officially legalized cryptocurrency mining and trading, a significant shift aimed at diversifying its economy, which has heavily depended on natural gas exports. This change is a product of legislation known as the Law of Turkmenistan on Virtual Assets, signed by President Serdar Berdimuhamedov in late November 2025.
Regulatory Framework
Turkmenistan, which controls around 10% of the world’s natural gas reserves, is now looking to capitalize on the growing digital assets market by establishing a regulatory framework for crypto activities. The new law mandates that all cryptocurrency mining and the operation of exchanges and custodial platforms undergo a licensing process under the supervision of the Central Bank of Turkmenistan and other relevant state agencies.
Anyone, including foreigners, can partake in these activities, provided they secure the required licenses and formally register their equipment and operations.
Compliance Measures
Adhering to stringent compliance measures, licensed businesses must follow rigorous Know-Your-Customer (KYC) and Anti-Money Laundering (AML) practices, prohibiting anonymous transactions and hidden mining activities. Although cryptocurrencies will be classified as digital property, they will not be recognized as legal tender, meaning that they cannot be used for payments in the country.
Advertising Regulations
Additional regulations in place include strict advertising measures that require companies to present risk warnings and disallow any claims of guaranteed profits or the use of governmental references in their branding.
Economic Context
Historically, Turkmenistan’s economy has been tightly controlled with significant internet restrictions, but there has been a recent push for economic openness aimed at boosting tourism and luring foreign investments.
Regional Trends
Turkmenistan’s move to legalize cryptocurrency comes amidst a broader regional trend. Its neighbors have already adopted various regulatory approaches to cryptocurrencies, with Kazakhstan emerging as a major crypto mining destination since 2021, thanks to its plentiful and cheap electricity. Meanwhile, Uzbekistan has established a comprehensive regulatory framework for its crypto sector. Close ally Pakistan has also engaged with the crypto landscape, creating the Pakistan Virtual Assets Regulatory Authority and enlisting former Binance CEO Changpeng Zhao for strategic guidance.
This regional context highlights Turkmenistan’s bid to remain competitive in the evolving digital asset ecosystem.
