Turkmenistan has formally legalized cryptocurrency mining and crypto exchanges, introducing a comprehensive regulatory framework for virtual assets as part of a broader push to stimulate economic development and attract foreign investment.The country’s Law on Virtual Assets, signed by President Serdar Berdimuhamedov on Nov. 28, establishes legal rules governing the creation, use and exchange of cryptocurrencies. The legislation treats virtual assets strictly as property, rather than legal tender or securities.Virtual assets classified as property, not moneyUnder the new law, virtual assets are explicitly barred from being used as payment for goods or services. Instead, they are classified as investment or property assets and divided into two categories:Secured virtual assets, backed by an underlying assetUnsecured virtual assets, such as BitcoinThe framework aims to provide legal clarity while limiting the role of cryptocurrencies in the domestic payments system.Mining legalized under central bank oversightCryptocurrency mining is now permitted for both companies and individuals, provided operators register with the Central Bank of Turkmenistan and comply with technical and operational standards set by regulators.The law explicitly bans covert mining practices, including cryptojacking, and introduces compliance requirements intended to bring mining activity into the formal economy.Licensed exchanges and custody services allowedThe legislation also authorizes the operation of crypto exchanges and custodial services, subject to licensing by the central bank. Both domestic and foreign entities are eligible to operate such platforms, with exceptions for firms linked to offshore jurisdictions.Licensed exchanges must enforce know-your-customer (KYC) and anti-money laundering (AML) requirements. Anonymous wallets and transactions are prohibited, reinforcing the government’s emphasis on regulatory control and transparency.Policy aligned with broader economic researchThe move aligns with findings from a 2025 study examining Organization of Islamic Cooperation (OIC) member states, which include Turkmenistan. The study concluded that permitting regulated crypto activity can support economic growth in developing economies.“Cryptocurrency legalization has significantly boosted economic growth in developing nations by enhancing financial inclusion and providing the legal clarity essential for attracting digital foreign direct investment,” said Muhammad Rheza Ramadhan, an economist and researcher at Indonesia’s Ministry of Finance.Balancing investment appeal with tight controlsTurkmenistan’s framework reflects a cautious but deliberate approach: opening the door to crypto-related investment and infrastructure while maintaining strict oversight through the central bank and limiting crypto’s role as a medium of exchange.By legalizing mining and exchange activity under a defined regulatory structure, authorities appear to be positioning the country to capture foreign capital and technology inflows — without relinquishing control over monetary policy or financial supervision.
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