Turkmenistan Legalizes Crypto Mining and Exchanges

Turkmenistan has officially enacted a new Law on Virtual Assets, legalizing cryptocurrency mining and regulated crypto exchanges. The move is part of a broader strategy to stimulate economic development and attract foreign digital investment.

The law was signed by President Serdar Berdimuhamedov on November 28. It establishes a legal framework for the creation, use, and exchange of virtual assets. At the same time, the government emphasizes strict oversight and does not recognize cryptocurrencies as legal tender.

Crypto Mining Becomes a Regulated Industry

Cryptocurrency mining is now permitted for both companies and individuals in Turkmenistan. However, miners must register with the Central Bank of Turkmenistan before starting operations. The regulator will oversee compliance and maintain an official registry.

The law introduces clear restrictions. Hidden mining practices, including cryptojacking, are explicitly banned. These measures aim to protect energy infrastructure and reduce unaccounted electricity consumption.

Virtual assets are legally defined as property rather than currency or securities. The framework distinguishes between asset-backed and non-backed cryptocurrencies, including Bitcoin. Digital assets cannot be used to pay for goods or services.

Licensed Exchanges and Investor Protection

Crypto exchanges and custodial services are allowed to operate only with a license issued by the central bank. Both domestic and foreign entities may own such platforms. However, companies linked to offshore jurisdictions are excluded.

Licensed operators must comply with KYC and AML regulations. Anonymous wallets and transactions are prohibited. This approach increases transparency and aligns the market with international compliance standards.

A 2025 study by the Organization of Islamic Cooperation indicates that crypto legalization can boost economic growth in emerging markets. Researchers highlight improved financial inclusion and clearer legal frameworks as key benefits.

By legalizing mining and exchanges under strict supervision, Turkmenistan is positioning itself within the global digital economy. The country seeks to balance innovation, regulation, and long-term investment appeal.

Read also: Tajikistan Imposes Prison Terms for Illegal Crypto Mining