Turkmenistan has legalised cryptocurrency mining and the operation of crypto exchanges, a rare policy shift for one of the world’s most tightly controlled states as it looks to modernise parts of an economy dominated by natural gas exports, according to reports.
President Serdar Berdymukhamedov signed legislation this week that brings “virtual assets” under the country’s civil-law framework and creates a licensing regime for cryptocurrency exchanges overseen by the central bank, reports said.
The law allows the creation, storage and circulation of virtual assets and sets out rules for mining and exchange services, but stops short of embracing crypto as money.
Digital currencies will not be recognised as legal tender, a currency or a security, meaning they cannot be used as an official means of payment.
Authorities have recently taken steps to digitise government functions, including adopting an electronic visa law intended to simplify entry for foreigners, a notable change for a country known for restrictive travel rules.
Turkmenistan declared itself officially neutral in 1995 under its first president, Saparmurat Niyazov, who kept tight control over politics and pursued isolation from foreign influence until his death in 2006.
Since succeeding his father as president in 2022, Berdymukhamedov has signalled limited opening, including hints of possible political reforms and pledges to expand air links and liberalise the visa system, according to reports.
Internet access remains tightly controlled, though curbs on some social media platforms have eased, reports said. Turkmenistan is ranked by the Committee to Protect Journalists among the world’s worst countries for independent media.
Legalising mining and exchanges could help Turkmenistan attract niche investment and build regulated channels for digital finance without loosening state control, especially since crypto is barred as legal payment and exchange operators will be licensed via the central bank.
The framework also fits a broader Central Asian push to define rules for digital assets, as neighbouring Kyrgyzstan positions itself as a regional player through crypto-related initiatives.
