Turkmenistan, one of the world’s most tightly controlled economies, has legalized cryptocurrency mining and the operation of virtual asset exchanges, bringing digital asset activity into a regulated space under civil law. President Serdar Berdimuhamedov signed the virtual assets law in late November 2025, and it came into force on January 1, 2026.
The legislation defines rules for the creation, storage, circulation and use of virtual assets but stops short of recognizing cryptocurrencies as legal tender, currency or securities. A licensing system overseen by the Central Bank of Turkmenistan now governs mining operators and crypto trading platforms.
Registration And Compliance Requirements
Under the new framework, individuals and legal entities can mine digital currencies, provided they undergo mandatory state registration with the central bank and meet technical and safety standards. The law also requires anti-money-laundering compliance, full customer identification and other regulatory safeguards for exchange operations. Anonymous wallets and unregulated transactions remain prohibited.
Exchanges and virtual asset service providers must obtain licences from the Central Bank before offering trading, custody or related services. Advertising of cryptocurrencies faces strict rules, including explicit risk disclosures and bans on promotions that suggest easy profits or target minors.
Policy Shift Reflects Economic Diversification Effort
Turkmenistan’s decision comes as the energy-rich nation seeks to diversify an economy long dependent on natural gas exports, largely to China. Legalizing crypto mining and regulated exchange activity represents a departure from longstanding restrictions on digital asset work and reflects broader trends in Central Asia toward experimenting with blockchain-related regulation.
Despite legalization, digital currencies remain tightly supervised by state authorities, and the internet within the country continues to be heavily regulated. Observers note that while the policy opens technical avenues for crypto activity, practical participation may still face hurdles in a context marked by controlled connectivity and state oversight.
Conclusion
Turkmenistan’s move joins a series of regulatory changes in Central Asia. Neighboring Uzbekistan is advancing regulatory frameworks that include stablecoin recognition and financial technology sandboxes, signalling varied approaches to integrating digital assets into formal economies across the region.
The country is also aligning its digital asset policy with civil law classification, ensuring clear legal status for virtual assets while maintaining state control over financial infrastructure and currency use. How the licensing regime unfolds in practice and whether it draws meaningful crypto investment remains to be seen as regional actors balance innovation with oversight.
