Turkmenistan, a small country with about 7.6 million people and very limited control over the internet, has officially legalized cryptocurrency mining and exchanges since January 2026.
The decision is aimed at attracting fresh investment and reducing dependence on gas exports, while keeping tight rules on who can operate and how crypto can be used.
On November 28, 2025, President Serdar Berdimuhamedov signed the Law on Virtual Assets, which officially came into force on January 1, 2026.
Under this law, only registered companies and approved entrepreneurs are allowed to mine cryptocurrencies or operate crypto exchanges. This is not an open market. Every business must obtain a license before starting, and all activities will be closely monitored by the government.
Several state bodies, including the Central Bank, the Cabinet of Ministers, and the Ministry of Finance and Economy, will oversee the sector. Regular checks will be carried out to make sure companies follow the rules.
Crypto mining is now legal only for approved operators. Any hidden or unlicensed mining remains illegal and could lead to penalties. This rule is especially strict given the country’s controlled digital environment.
Exchanges must also operate under strict rules. They can offer crypto trading services, but only within the framework set by regulators. Taxes must be paid, and crypto cannot be used for illegal activities.
The new law clearly states that cryptocurrencies will not be treated as legal tender. This means crypto cannot be used for everyday payments, salaries, or official transactions.
Instead, digital assets are classified as digital property that people can legally own, hold, and trade under regulated conditions.
Licensed crypto firms must follow strong anti-money laundering rules, store most assets in cold wallets, and report activity to regulators. Any unlicensed mining or exchange activity is strictly banned. Authorities also have the power to suspend or cancel licenses if rules are broken.
While nearby countries like Uzbekistan and Kazakhstan already have clear crypto rules, Turkmenistan is taking a different path. Instead of banning crypto, it is choosing a tightly controlled and regulated approach.
Even though crypto trading and holding are still very limited today, this new law slowly opens the door for adoption under strict government rules.
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