Crypto mining and trading are now legal in Turkmenistan after a new law signed by President Serdar Berdimuhamedow entered into force this week. The legislation, approved in late November, creates the country’s first formal legal basis for virtual assets and brings cryptocurrency activity into the regulated economy. The law marks a clear policy shift for one of the world’s most closed economies. Until now, crypto activity operated in a legal gray area, without clear rules or protections. With the new framework active, authorities have moved crypto mining and exchange services under state oversight rather than informal tolerance. Officials framed the change as part of a broader economic diversification effort, as Turkmenistan looks beyond natural gas exports and explores digital and technology-linked sectors. New Law Sets Rules for Crypto Activity The new legislation defines cryptocurrencies as “virtual assets ” and places them under civil law. As a result, mining, storage, issuance, trading, and transfer of crypto assets now fall within a formal legal structure rather than remaining unregulated. Under the law, crypto exchanges must operate through a licensing system. State bodies, led by the central bank, oversee registration, compliance, and operational standards. This approach gives the government direct visibility into crypto platforms operating inside the country. At the same time, the law draws a clear line on usage. Cryptocurrencies are not recognized as legal tender, money, or securities. As a result, businesses and individuals cannot use crypto as an official means of payment, even though trading and mining are allowed. State Oversight and Economic Goals Authorities said the framework aims to attract controlled investment while limiting financial risks. By requiring licenses and oversight, the government seeks to manage capital flows and reduce exposure to fraud and illicit finance. The move also aligns with Turkmenistan’s efforts to modernize parts of its economy without loosening broader financial controls. While crypto mining could benefit from the country’s energy resources, participation remains tightly regulated through state approval. However, broader constraints remain in place. Internet access in Turkmenistan continues to face heavy restrictions, which may limit how easily local users and firms engage with global crypto markets. As a result, practical adoption could remain concentrated among approved operators rather than the general public. Still, the law establishes a clear legal starting point. For the first time, crypto activity in Turkmenistan operates under written rules, signaling cautious acceptance rather than outright prohibition.
