The Turkmenistan legalizes cryptocurrency mining and exchanges to attract foreign capital and reduce its dependence on hydrocarbons.
Unprecedented Legal Framework for Digital Assets
The new law on virtual assets, signed on November 28 by President Serdar Berdimuhamedow, establishes a clear legal framework for the use, creation, and exchange of cryptocurrencies on Turkmen territory.
Digital assets are defined as property, not as legal tender or financial instruments. They are classified into two categories: backed assets like stablecoins and unsecured assets like bitcoin. Their use as a means of payment for goods or services is strictly prohibited. Cryptocurrency is allowed as a holding or investment asset, not as currency.
Mining Becomes Legal Under Strict Conditions
Cryptocurrency mining is now permitted for both businesses and individuals, but it is regulated. Miners must register with the Central Bank of Turkmenistan and adhere to technical standards set by the authorities.
The legislation explicitly prohibits certain practices, such as cryptojacking, indicating the country’s desire to attract structured industrial players rather than tolerate gray or informal activities.
In a country with significant energy resources, this move could appeal to foreign operators looking for underexploited jurisdictions.
Authorized Exchanges, but Closely Monitored
The law also allows the operation of exchange platforms and digital asset custody services, provided they obtain a license from the central bank. Foreign entities are permitted, except those based in offshore jurisdictions or linked to opaque structures.
Compliance obligations are stringent. Exchanges must adhere to strict know-your-customer and anti-money laundering rules. Anonymous transactions and unidentified wallets are prohibited, contrasting with permissive approaches seen in some emerging areas.
An Assertive Economic Strategy
Legalizing cryptocurrencies has significantly boosted economic growth in developing countries by strengthening financial inclusion and providing the essential legal clarity to attract digital foreign direct investments.
This legalization is part of a broader consideration. A study conducted in 2025 on members of the Organization of Islamic Cooperation concluded that legal regulation of cryptocurrencies promotes economic growth and foreign digital investment.
For Turkmenistan, the challenge is clear: diversifying an economy still heavily reliant on gas while modernizing its financial infrastructure. By treating crypto as a regulated asset class rather than an alternative currency, the country aims to reap the economic benefits of blockchain without relinquishing control.
It remains to be seen if international actors will respond. The framework is set. The real attractiveness will now depend on its practical application and regulatory stability over time.
