Turkmenistan has officially legalized cryptocurrency mining and exchange activity, marking a significant policy shift for the tightly controlled Central Asian nation.
The law, signed by President Serdar Berdimuhamedow in late November and effective January 1, establishes a framework that allows both domestic and foreign companies to engage in crypto mining after completing registration requirements. Mining pools are also explicitly permitted under the new rules.
Officials say the country plans to leverage its abundant natural gas resources to power mining operations and develop new infrastructure around the sector.
Strict Licensing and Compliance Requirements
The legislation introduces strict compliance expectations for exchanges operating inside Turkmenistan.
Licensed platforms must implement:
- Know Your Customer (KYC) procedures
- Anti-Money Laundering (AML) controls
- Secure cold storage standards for customer assets
Despite legalization, crypto is not recognized as legal tender, currency, or securities under the law.
Following a Regional Trend
Turkmenistan’s move follows broader developments across Central and South Asia.
Kazakhstan emerged as a major mining hub in 2021 following China’s crackdown, while Pakistan created the Pakistan Virtual Assets Regulatory Authority in 2025 and opened the door for licensed exchanges.
The legislation is also part of Turkmenistan’s broader push to diversify its economy, which remains heavily dependent on natural gas exports. Recent years have seen gradual openings in tourism and energy — crypto now joins that list.
Opportunities and Obstacles Ahead
While the legal framework is in place, analysts expect rollout challenges.
Tight internet controls, limited foreign investment, and heavy state oversight may slow adoption despite the green light. Regulatory enforcement and infrastructure expansion will be key hurdles.
Success may depend on Turkmenistan’s ability to attract international mining firms and exchange operators while maintaining its restrictive financial environment.
A Region Growing More Crypto-Friendly
Situated in an increasingly crypto-active region, Turkmenistan is positioning itself within a broader Central Asian digital asset ecosystem. Governments across the region are exploring crypto as a pathway to diversification beyond traditional commodities.
For Turkmenistan, the next phase will determine whether legalization translates into meaningful investment — or remains largely symbolic.
