Turkmenistan Legalises Crypto Mining and Exchanges in Major Economic Policy Shift

ASHGABAT, January 2, 2026 — Turkmenistan has officially legalised cryptocurrency mining and exchange services, marking one of the most significant economic policy changes in the country's recent history as authorities seek to modernise a tightly controlled economy heavily reliant on natural gas exports.

President Serdar Berdimuhamedov signed legislation that brings virtual assets under the country's civil law framework and establishes a licensing regime for cryptocurrency exchanges and mining operations under the supervision of the Central Bank of Turkmenistan. The move represents a notable shift for one of the world's most isolated states, which has traditionally maintained strict controls over both economic activity and internet access. While the new law legalises cryptocurrency-related businesses, digital assets will not be recognised as legal tender, currency, or securities and cannot be used as an official means of payment.

Under the legislation, cryptocurrency exchanges, custodial services, and mining operations must obtain licenses from the central bank and comply with anti-money laundering and know-your-customer requirements. Both domestic and foreign entities may participate in the sector, subject to regulatory approval.

The law classifies virtual assets as property rather than money, creating a legal framework governing their creation, storage, exchange, and circulation. Authorities have also prohibited anonymous cryptocurrency transactions and wallets as part of the regulatory structure. Industry observers say the legislation provides long-awaited legal certainty for cryptocurrency activities while maintaining significant government oversight.

Turkmenistan's decision follows a broader trend among Central Asian states seeking to position themselves within the global digital asset industry. Neighboring countries, including Kyrgyzstan, have also introduced cryptocurrency initiatives and regulatory frameworks aimed at attracting investment and fostering financial innovation.

The effectiveness of Turkmenistan's new framework will depend on how licensing requirements, technical standards, and enforcement mechanisms are implemented in practice. Market participants are expected to closely monitor the rollout of regulations during the coming months.

For now, the legislation represents a significant policy departure for a country long associated with economic isolation, signaling a cautious but notable step toward participation in the global digital asset economy.

https://www.aljazeera.com/news/2026/1/2/turkmenistan-legalises-crypto-mining-and-exchanges-in-shift-for-economy