Turkmenistan has officially legalized cryptocurrency mining and exchange as of January 1, 2026, marking a noteworthy shift for the country's tightly controlled economy, which is heavily reliant on natural gas exports. President Serdar Berdimuhamedow signed the "law on virtual assets," which aims to regulate activities within these industries.
The new legislation brings virtual assets under civil law and establishes a licensing regime for cryptocurrency exchanges, which will be overseen by the country's central bank. While the law permits both individual entrepreneurs and legal entities to mine cryptocurrencies, it stipulates that all involved must register with the Central Bank of Turkmenistan. Upon approval, applicants will receive an indefinite certificate, allowing them to legally engage in mining activities. Registration will also be mandatory for mining equipment, and miners must provide a valid crypto wallet and comply with technical and fire safety standards. The use of third-party computing resources for covert mining is strictly prohibited.
Despite these developments, digital currencies will not be recognized as legal tender, currency, or security within Turkmenistan. Moreover, the internet remains strictly regulated and controlled by the government. The establishment of crypto wallets for clients is allowed only upon the completion of full identification procedures, in compliance with anti-money laundering regulations.
This move by Turkmenistan reflects an effort to diversify its economy beyond natural gas exports and attract investment and accelerate digitalization. The country possesses the world's fourth-largest gas reserves, with China being its primary buyer. Crypto mining is viewed as a potential avenue to monetize excess energy capacity and broaden revenue streams.
However, the feasibility of mining operations is still questionable due to the government's tight regulation of internet access. Turkmenistan has historically been one of the world's most closed nations, with severe restrictions on media, travel, and foreign investment. The new law aligns with a pattern of cautious, state-led reforms rather than full liberalization.
Furthermore, the law introduces strict restrictions on the use of state-related terminology and symbols in the crypto industry. Miners, virtual asset issuers, and service providers are prohibited from using words such as "Turkmen," "Turkmenistani," or "national" in their names or symbols, in any language or form, including abbreviated versions. Cryptocurrency advertising must include clear risk warnings, information on the possibility of a total loss of funds, and a statement that virtual assets are not backed by the state.
