Turkmenistan enacts law legalizing cryptocurrency trading and mining

Turkmenistan has enacted legislation that legalizes cryptocurrency mining and trading, the government announced after a new law signed by President Serdar Berdimuhamedow in late November took effect on Thursday.

The measures open the Central Asian country’s legal framework to the crypto industry while maintaining limits on the status of crypto assets. The law permits mining activity, including the operation of mining pools, and allows non-Turkmenistan residents to conduct mining within the country once they register, according to the legislation.

At the same time, the new rules make explicit that cryptocurrencies are not recognized as legal tender, as national currency, nor as securities in Turkmenistan. The law therefore creates a legal pathway for certain crypto-related commercial activities without granting crypto assets the formal attributes of money or traded securities.

Turkmenistan-based crypto exchanges will be subject to licensing and compliance requirements under the new framework. The law requires exchanges that operate in the country to secure licenses, implement Know-Your-Client (KYC) and Anti-Money Laundering (AML) procedures, and meet specific cold storage obligations for holding digital assets.

Key regulatory requirements for domestic exchanges set out by the legislation include:

• Obtaining a license to operate within Turkmenistan;
• Establishing KYC and AML checks for customers;
• Complying with prescribed cold storage standards for custody of crypto assets.

Officials framed the move as part of a broader effort to diversify the national economy. Turkmenistan is heavily dependent on natural gas exports, and the legislation could enable the country to leverage surplus energy supplies for crypto mining. That approach mirrors a path pursued by regional peers, most notably Kazakhstan, which became a major destination for Bitcoin mining after a wave of relocations following China’s crypto ban in 2021.

Turkmenistan is often described as one of the more closed-off countries in the world, but authorities have moved in recent years to open parts of the economy to outside activity, including initiatives in the tourism and energy sectors. Extending legal recognition to crypto mining and exchange operations is the latest step in that direction.

The region as a whole has seen rising crypto adoption and regulatory activity. Kazakhstan’s expansion of mining capacity after 2021 is one example of how countries in Central Asia have become involved in the industry. Pakistan, an ally of Turkmenistan, implemented notable crypto regulatory measures in 2025, including establishing a national virtual assets regulator, permitting major exchanges to operate, building a Bitcoin reserve and appointing a high-profile industry figure as a strategic adviser.

Despite these regional developments, observers expect the pace of adoption in Turkmenistan to be moderated by domestic conditions. The government maintains tight control over internet access, enforces strict oversight of financial activities and attracts limited foreign investment. Those factors could restrain rapid expansion of crypto mining and trading even as the legal framework becomes more accommodating.

The law’s allowance for non-resident miners and mining pools may nevertheless attract some operators, particularly if Turkmenistan can offer competitive energy prices or access to excess electricity generation. The licensing and compliance obligations for exchanges aim to provide regulatory oversight and reduce financial crime risks, while the explicit exclusion of cryptocurrencies from legal-tender or securities status preserves the central bank’s and financial regulators’ current monetary framework.

Implementation details, including licensing procedures, registration steps for non-resident miners and the precise technical standards for cold storage, will determine how quickly market participants can establish operations in Turkmenistan. Those details are expected to be specified in implementing regulations and administrative procedures following the law’s entry into force.

The legislation aligns Turkmenistan with several neighboring jurisdictions that have sought to harness crypto-related economic activity without fully integrating digital assets into national monetary systems. How the country balances energy policy, regulatory control and market incentives will influence whether it becomes a meaningful player in the regional crypto ecosystem.

For now, the law provides a defined legal pathway for mining and exchange activity while preserving clear limits on the status of crypto assets. It represents a policy shift toward selectively opening the economy to new forms of digital business amid ongoing efforts to diversify revenue sources beyond hydrocarbon exports.

Key Topics

Turkmenistan Cryptocurrency Law, Crypto Mining Legalization, Licensing For Crypto Exchanges, Kyc And Aml Requirements, Cold Storage Standards, Non-resident Miner Registration, Mining Pool Operations, Cryptocurrencies Not Legal Tender, Energy Diversification Through Mining, Natural Gas Export Dependency, Central Asia Crypto Regulation, Kazakhstan Bitcoin Mining, Implementation And Licensing Procedures