Turkmenistan Legalises Crypto Mining and Exchanges

Turkmenistan has formally legalised cryptocurrency mining and exchange operations, marking a significant policy shift in one of the world’s most tightly controlled economies. The new legislation, signed on January 1, 2026, brings virtual assets under the country’s civil law framework and introduces a regulated structure for crypto-related activities.

New Legal Framework for Virtual Assets

The law was signed by President Serdar Berdimuhamedov and establishes official recognition of cryptocurrency mining and trading. Under the legislation, cryptocurrencies are classified as virtual assets and are governed by civil law. However, the government has clarified that digital currencies will not be recognised as legal tender, currency, or securities, limiting their role strictly to regulated asset transactions.

Licensing and Central Bank Oversight

A key feature of the new law is the creation of a licensing regime for cryptocurrency exchanges. These exchanges will operate under the supervision of Turkmenistan’s central bank, ensuring state oversight in line with the country’s controlled financial system. Authorities have stated that the framework is intended to improve transparency and regulatory clarity, even as broader internet access and digital freedoms remain tightly regulated.

Economic Context and Strategic Rationale

Turkmenistan’s move comes against the backdrop of an economy heavily dependent on natural gas exports. The Central Asian nation relies significantly on gas revenues, with China being its primary buyer. The government is also pursuing long-term energy diversification strategies, including a pipeline project to supply gas to Afghanistan, Pakistan, and India. Analysts view the crypto legislation as a cautious attempt to modernise parts of the economy without loosening overall state control.

Imporatnt Facts for Exams

• Turkmenistan legalised cryptocurrency mining and exchanges in January 2026.
• Cryptocurrencies are regulated as virtual assets under civil law.
• Digital currencies are not recognised as legal tender or securities.
• Crypto exchanges will be licensed and overseen by the central bank.

Controlled Opening Amid Broader Reforms

The crypto law follows other limited reforms, including the introduction of electronic visas in 2024 to simplify entry for foreign nationals. Since gaining independence in 1991, Turkmenistan has maintained strict controls on travel, information flow, and economic activity. While the legalisation of crypto mining and exchanges signals selective economic opening, officials have made it clear that digital currencies will function within a narrowly defined and closely monitored regulatory environment.