Turkmenistan has passed a law allowing cryptocurrency mining and exchanges under strict regulations, effective January 1, 2026. Signed by President Serdar Berdimuhamedov, the legislation aims to attract investment while maintaining tight government control. Cryptocurrencies will not serve as legal tender in the isolated Central Asian nation.
On November 28, 2025, President Serdar Berdimuhamedov signed the Law on Virtual Assets, which took effect on January 1, 2026. This marks a significant policy shift for Turkmenistan, a former Soviet republic in Central Asia with a population of about 7.6 million and heavy reliance on natural gas exports, primarily to China. The country is also developing a pipeline to supply gas to Afghanistan, Pakistan, and India.
The new law brings cryptocurrencies under civil law as digital property, permitting individuals and businesses to own, hold, and trade them through licensed channels. However, digital currencies are explicitly not recognized as legal tender, meaning they cannot be used for payments, salaries, or official transactions. Only registered companies and approved entrepreneurs may engage in mining or operate exchanges, requiring licenses from authorities including the Central Bank, Cabinet of Ministers, and Ministry of Finance and Economy.
Operations face stringent oversight: licensed entities must comply with anti-money laundering rules, store most assets in cold wallets, pay taxes, and report activities to regulators. Unlicensed mining or exchanges remain illegal, with penalties for violations, and authorities can suspend or revoke licenses. Turkmenistan's internet, tightly controlled by the government, adds another layer of restriction to these activities.
This regulated approach contrasts with bans in some neighbors but aligns with frameworks in Uzbekistan and Kazakhstan. The move seeks to draw investment and lessen dependence on gas, though adoption will likely remain limited given the nation's isolation and strict entry rules, including electronic visas introduced in April 2024.
