Turkmenistan Legalizes Crypto Mining and Exchanges for the First Time
Turkmenistan has officially legalized cryptocurrency mining and the operation of crypto exchanges. A newly adopted law sets strict conditions for market participants while introducing safeguards to protect citizens from the risks associated with virtual assets. Key Provisions of the New Law Coming into force on January 1, 2026, the Law on Virtual Assets, signed by President Serdar Berdymuhamedov and published in the state newspaper Neutral Turkmenistan, legalizes cryptocurrency mining, exchanges, and trading platforms for the first time in Turkmenistan. The law defines the legal framework for the creation, storage, issuance, and circulation of virtual assets. While cryptocurrencies will not be recognized as a means of payment, currency, or security, they are treated as objects of civil law. Virtual assets may be either secured or unsecured. Crucially, the legislation makes clear that the state bears no responsibility for obligations incurred by crypto platforms or for losses in asset value. Mining Regulated by the Central Bank The right to mine cryptocurrencies will be granted to individual entrepreneurs and legal entities, all of whom must register electronically with the Central Bank of Turkmenistan. Hidden mining, the unauthorized use of another party’s computing power, is explicitly banned, targeting illicit mining networks. Crypto exchanges and related service providers must obtain licenses from the Central Bank. Permitted services include the exchange, transfer, storage, and management of virtual assets, as well as initial offerings. Opening a crypto wallet will require full customer identification in line with anti-money laundering protocols. Both Turkmenistan residents and foreign nationals may establish crypto exchanges, but with strict limitations: Individuals and legal entities from offshore jurisdictions are barred from participation; and Founders holding offshore bank accounts are also disqualified. Tight Restrictions on Crypto Advertising The law introduces some of the region’s strictest rules on crypto-related advertising. All promotional materials must include a warning that virtual assets are not backed by the state and that investments carry the risk of financial loss. The following are prohibited in advertising: Promises of profitability; Use of images of minors; Implications of luxury, bonuses, or effortless wealth; References to state affiliation, including the use of “Turkmenistan,” “national,” or “Turkmen”; and Use of terms like “virtual asset,” “cryptocurrency,” or “digital asset” by companies not directly involved in the sector. These restrictions aim to protect the public from deceptive and aggressive promotion of high-risk financial products. Part of a Regional Regulatory Trend Turkmenistan’s move follows a broader regional trend toward formalizing the crypto sector. In November, Kazakhstan also enacted legislation governing the circulation of unsecured digital assets nationwide. Previously, such activities were only permitted within the Astana International Financial Center source.
