TLDR

  • Cryptocurrency exchanges in Turkmenistan are required to register and abide by the central bank’s regulations.

  • Virtual assets are lawful but cannot be utilized as a form of payment or legal tender.

  • Mining is allowed for registered individuals and enterprises under new criteria.

  • The law intends to attract investment without loosening the overall internet restrictions.

Turkmenistan has enacted a new law that legitimizes cryptocurrency mining and exchange activities. The legislation, signed by President Serdar Berdimuhamedov on January 1, 2026, represents a rare policy change in a nation renowned for its closed economy and restricted internet access.

The law places digital assets within the civil law framework and categorizes them as virtual assets. Nevertheless, the government declared that cryptocurrencies will not be regarded as legal tender, currency, or securities. Instead, they will be strictly recognized as property, to be used solely in regulated asset transactions.

Central Bank Licensing and Supervision Introduced

The [law] establishes a licensing system for cryptocurrency exchanges and custodial services. All such entities are required to register and operate under the supervision of Turkmenistan’s central bank. This approach mirrors the country’s inclination toward centralized financial oversight.

Exchanges are obliged to implement know-your-customer (KYC) and anti-money laundering (AML) requirements. Anonymous transactions and wallets are forbidden, and companies associated with offshore jurisdictions are not permitted to operate. The government stated that these measures are aimed at enhancing transparency and ensuring that financial control remains within the state.

Cryptocurrency mining is now lawful for both individuals and companies, but all participants must register with the central bank. The law also prohibits clandestine mining methods like cryptojacking and imposes technical standards for mining operations.

Virtual Assets Treated as Property, Not Currency

The law defines digital currencies as virtual assets, which must be treated as property and not used for payments. It creates two categories: secured assets backed by physical or financial instruments and unsecured assets such as Bitcoin.

Transactions involving these assets must adhere to strict legal guidelines. Payments for goods and services in digital currency are not allowed. This preserves the state’s currency monopoly while enabling limited involvement in blockchain-based financial systems.

Authorities stated that the goal is to attract investment while maintaining full control over financial activities in the country. Despite this opening, internet access in Turkmenistan remains tightly restricted, which may restrict the use of blockchain-based services.

Turkmenistan Crypto Law Part of Measured Economic Strategy

Follows limited recent reforms, like the introduction of electronic visas in 2024 to facilitate foreign entry. The country remains heavily reliant on natural gas exports, primarily to China, and is exploring ways to diversify its economy through controlled modernization.

The new law emerges as other Central Asian countries are also intensifying their focus on digital assets. For instance, Kyrgyzstan has partnered with global crypto firms to explore blockchain development and education.

Economists propose that carefully regulated crypto policies can bolster economic development, particularly in emerging markets. Turkmenistan’s new law is viewed as a step toward modern financial tools without easing government control.