Turkmenistan has enacted the Law on Virtual Assets, signed by President Serdar Berdimuhamedov on November 28, 2025, and effective January 1, 2026, allowing cryptocurrency mining and exchanges with rigorous state regulation. Virtual assets are classified as property or investment instruments—not legal tender—to attract foreign investment while curbing misuse in the isolated Central Asian nation.
Turkmenistan, a former Soviet republic with a population of about 7.6 million and heavy reliance on natural gas exports to China, has embraced digital assets through the Law on Virtual Assets. Passed by parliament in November 2025, the legislation marks a policy shift amid development of a major gas pipeline to Afghanistan, Pakistan, and India.
Overseen by the Central Bank of Turkmenistan, along with the Cabinet of Ministers and Ministry of Finance and Economy, the framework permits individuals and companies to mine cryptocurrencies after registering and meeting technical standards. Cryptojacking and unlicensed operations are banned, with authorities empowered to suspend or revoke licenses for violations. Crypto exchanges and custodial services require licenses, available to domestic and foreign entities except those in offshore jurisdictions. All must enforce know-your-customer (KYC) and anti-money laundering (AML) protocols, store most assets in cold wallets, prohibit anonymous wallets and transactions, and comply with tax and reporting obligations.
Virtual assets cannot be used for payments, salaries, or official transactions and are explicitly not currency, legal tender, or securities. The law distinguishes secured assets (backed by property) from unsecured ones like Bitcoin.
This regulated approach aims to boost economic growth and financial inclusion. A 2025 study on Organization of Islamic Cooperation states, including Turkmenistan, noted: "Cryptocurrency legalization has significantly boosted economic growth in developing nations by enhancing financial inclusion and providing the legal clarity essential for attracting digital foreign direct investment," said Muhammad Rheza Ramadhan, an economist at Indonesia’s Ministry of Finance.
The move aligns with Central Asian trends: Kazakhstan emerged as a Bitcoin mining hub after China's 2021 ban, Uzbekistan adopted similar frameworks, and Pakistan created a national virtual assets authority in 2025. However, Turkmenistan's tight internet controls, isolation, and recent 2025 electronic visa system may limit adoption.
