Turkmenistan has officially legalized cryptocurrency mining and exchange activities, marking a rare economic shift in one of the world’s most isolated states.
President Serdar Berdimuhamedov signed the legislation on Thursday, bringing virtual assets under the country’s civil law framework. Additionally, the new rules introduce a licensing system for cryptocurrency exchanges overseen by the central bank.
The move represents a cautious opening rather than a full embrace of digital finance. However, cryptocurrencies will not be recognized as legal tender, currency, or securities within the country.
Officials framed the law as a way to regulate activity already occurring informally. Furthermore, the legislation allows the state to monitor crypto operations more closely in a tightly controlled financial system.
Turkmenistan’s internet access remains heavily restricted and state managed. Consequently, everyday use of digital assets by the general population is expected to stay limited.
The country’s economy depends largely on exports of natural gas. Additionally, revenues from hydrocarbons dominate government finances and shape foreign policy decisions.
China remains Turkmenistan’s largest gas customer. Meanwhile, authorities continue work on a long-planned pipeline intended to supply gas to Afghanistan, Pakistan, and India.
The crypto law follows another modest reform aimed at foreign engagement. In April last year, the government approved legislation introducing electronic visas for visitors.
That change was designed to simplify entry procedures for foreigners. However, Turkmenistan has long enforced strict visa requirements, with many applications rejected without clear explanations.
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Cryptocurrency mining is a global enterprise
Since gaining independence from the Soviet Union in 1991, the country has maintained a highly centralized political system. Furthermore, the state continues to manage economic reform.
Analysts see the crypto framework as an attempt to diversify revenue sources without loosening political control. Additionally, placing exchanges under central bank supervision keeps digital assets firmly within government oversight.
The legislation fails to specify how quickly the government will issue licenses. Subsequently, it remains unclear how many domestic or foreign operators may seek approval under the new rules.
China banned cryptocurrency trading and mining in 2021, forcing miners to relocate operations abroad.
Consequently, large-scale Bitcoin mining shifted rapidly to Kazakhstan, attracted by cheap power and looser oversight. The surge strained Kazakhstan’s electricity grid, prompting authorities to later impose taxes and tighter controls.
Meanwhile, the United States became the world’s largest Bitcoin mining hub, supported by capital markets and energy access.
Additionally, miners expanded into countries including Russia, Canada, Iran, and parts of Latin America over subsequent years. Some governments tolerated mining for revenue, while others imposed limits over grid stability and financial risks.
In Central Asia, states with surplus energy increasingly weighed crypto as a controlled economic outlet. However, policy uncertainty and enforcement varied widely, causing frequent shifts in mining locations.
Turkmenistan now joins this trend cautiously, allowing mining under state licenses while maintaining strict oversight.
