Turkmenistan has legalized cryptocurrency mining and trading after a new law came into effect on Jan. 1.
Summary
- Turkmenistan has legalized cryptocurrency mining and trading under a new law.
- The framework allows both residents and foreign entities to operate licensed crypto mining and exchange services.
The landlocked Central Asian nation, which holds roughly 10% of the global natural gas reserves, is looking to expand beyond its heavy reliance on natural gas exports by promoting crypto mining and regulated digital asset activity as part of a new regulatory framework that was signed by President Serdar Berdimuhamedov in late November 2025.
Dubbed the Law of Turkmenistan on Virtual Assets, the framework brings cryptocurrency mining and the operation of crypto exchanges and custodial platforms under a formal licensing system overseen by the Central Bank of Turkmenistan and other state bodies.
Under this framework, individuals, including non-Turkmenistan residents, and legal entities, can now participate in these activities, provided they obtain the necessary licenses and register all their equipment and operations with the authorities.
All licensed entities would be required to comply with strict Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules, which include a complete ban on anonymous wallets and transactions. Covert or “hidden” mining is also strictly prohibited.
However, cryptocurrencies are recognized only as digital property and not considered legal tender, currency, or securities within Turkmenistan. This means using crypto for payments remains off the table.
Other provisions include strict advertising rules that mandate providers to include risk warnings. Meanwhile, promises of profit and using state-related terms in company branding is banned.
To date, Turkmenistan has been known for its strict, tightly controlled economy, with heavy restrictions on the internet, but has recently taken steps to open up its economy in a bid to grow tourism and attract foreign investments.
Learning from regional playbooks
Turkmenistan’s decision to legalize mining and exchange activity comes as some of its neighbors and allies have already experimented with crypto adoption and regulatory oversight with varying outcomes.
Most notably, Kazakhstan, which shares a border with Turkmenistan, has become a crypto mining hub since 2021 by leveraging its abundant and inexpensive electricity and has opened up to the crypto economy in recent years by exploring stablecoins and potential investments in crypto infrastructure.
Uzbekistan, located to the north and east, has a well-developed and strictly regulated framework governing the crypto sector.
Meanwhile, Pakistan, a close ally of Turkmenistan, has also made notable strides in formalizing its approach to the crypto sector by establishing the Pakistan Virtual Assets Regulatory Authority and appointing former Binance CEO Changpeng Zhao as its strategic adviser.
