Ashgabat (TDI): Turkmenistan has taken a notable step toward economic diversification by legalizing cryptocurrency mining and the operation of crypto exchanges.
The new legal framework, which came into effect on January 1, 2026, marks a significant shift in the country’s approach to digital assets and economic policy.
The legislation, signed by President Serdar Berdimuhamedov in late 2025, brings virtual assets under civil law and introduces a licensing regime for crypto miners and exchanges.
Under the new rules, individuals and companies that wish to mine cryptocurrencies must undergo mandatory registration with the Central Bank of Turkmenistan and meet strict technical and safety requirements.
Licensed exchanges and virtual asset service providers are likewise subject to oversight, including full client identification and compliance with anti-money-laundering regulations.
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Despite this opening, the government has made clear that digital currencies will not be recognized as legal tender, means of payment, or securities.
This means that while mining and trading are legal under regulated conditions, ordinary use of cryptocurrencies for everyday transactions remains prohibited. The state also tightly controls internet access and maintains broad powers over digital infrastructure.
The move is widely seen as part of a broader effort to diversify Turkmenistan’s economy, which has historically depended on its vast natural gas reserves.
China remains the country’s primary gas buyer, and Ashgabat has been pursuing pipeline projects aimed at providing energy to Afghanistan, Pakistan, and India.
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By enabling regulated crypto activities, officials hope to capitalize on surplus energy and attract foreign investment, although some analysts caution that the highly controlled environment could limit rapid growth in the sector.
In addition to opening the door for digital asset businesses, the legalization aligns with other modest efforts by the government to modernize aspects of the economy and governance.
In 2025, Turkmenistan introduced electronic visas to simplify entry for foreign visitors, reflecting a cautious willingness to embrace some elements of digital transformation while preserving strict political and information controls.
