President Serdar Berdimuhamedov signed comprehensive digital asset legislation on November 28, 2025, making his country one of the latest to formally regulate the crypto industry.
Turkmenistan has made a major shift in its economic policy by legalizing cryptocurrency trading and mining.
The new law will take effect on January 1, 2026, giving businesses more than a year to prepare for the changes. This move puts Turkmenistan alongside its Central Asian neighbors in embracing digital currencies while maintaining strict government oversight.
Heavy State Control Over Digital Assets
The legislation creates a tightly controlled environment for cryptocurrency activities. The government can stop, void, or force refunds of token issuances at any time. The Central Bank of Turkmenistan will have the power to authorize distributed ledgers or operate its own blockchain infrastructure.
All crypto exchanges and custodial services must obtain licenses from the central bank. These platforms must follow strict know-your-customer and anti-money laundering rules. They also need to store digital assets in cold storage systems to protect customer funds.
Credit institutions are banned from offering crypto services under the new framework. The state clearly wants to separate traditional banking from digital asset activities.
Mining operations require mandatory registration with the Central Bank through an electronic system. Both individual entrepreneurs and legal entities can mine cryptocurrencies, but hidden or covert mining is strictly prohibited. Companies not related to the crypto industry are also prohibited from using terms like “virtual asset,” “cryptocurrency,” and “digital asset.”
Digital Assets Not Legal Tender
The law makes it clear that cryptocurrencies will not be recognized as legal tender, currency, or securities in Turkmenistan. Digital assets are treated as objects of civil rights but cannot be used for payments within the country.
The legislation divides digital assets into two categories: backed and unbacked. Regulators will later establish rules for liquidity conditions, settlement requirements, and emergency redemption for backed tokens. This suggests that backed assets will face closer supervision than unbacked ones.
Strict Advertising and Branding Rules
Companies in the cryptocurrency space face heavy restrictions on their branding and marketing. They cannot use “Turkmenistan,” “Turkmen,” “Turkmeni,” or words like “state” and “national” in their business names or symbols.
All crypto advertisements must include clear warnings about financial risks and the potential for total loss of funds. Marketing materials must state that digital assets are not backed by the government. Companies cannot portray crypto trading as an easy way to make money or use images of minors in their ads.
Economic Diversification Strategy
Turkmenistan’s move toward crypto regulation is part of a broader plan to diversify its economy. The country has the world’s fourth-largest natural gas reserves and has historically relied heavily on energy exports, mostly to China.
Government officials say the new law will help attract foreign investment and stimulate digitalization in the country. This represents a significant shift for a nation known for its closed economy and strict information controls.
The Central Asian region is becoming a growing hub for cryptocurrency activities. Kazakhstan has already established comprehensive crypto regulations and is planning a state cryptocurrency fund. Kyrgyzstan has launched a national stablecoin in partnership with Binance.
Government Planning and Implementation
The legislation followed a government meeting on November 21, 2025, where Deputy Chairman of the Cabinet of Ministers Hojamyrat Geldimyradov presented a detailed report. The report outlined the legal, technological, and organizational foundations needed for introducing digital assets in Turkmenistan.
The government also proposed creating a special State Commission to oversee the cryptocurrency industry. This body will coordinate regulatory decisions as the framework is implemented over the coming years.
Additionally, the government reviewed a draft Roadmap for the Regulation of Virtual Assets and the Implementation of Mining Technologies for 2026-2030 during a Cabinet meeting.
The new law is part of Turkmenistan’s broader Concept for the Development of the Digital Economy running from 2019 to 2025. The country has already launched the “Sanly Bilim” (Digital Education) project and electronic government services as part of this modernization effort.
Impact on Global Mining
Crypto analysts believe Turkmenistan’s entry into regulated mining could significantly impact global Bitcoin production. The country’s vast natural gas reserves provide cheap energy that could attract large-scale mining operations.
Energy-rich countries are increasingly exploring regulated mining industries to monetize surplus power. If Turkmenistan follows through with transparent licensing and infrastructure support, Central Asia could become a major Bitcoin production corridor.
One analyst noted that “Next week’s energy policy ripples could make Central Asia the new Texas for BTC production” as more countries in the region embrace cryptocurrency mining with proper regulations.
Challenges and Limitations
Despite the opportunities, Turkmenistan faces several challenges in implementing its crypto framework. The country will need to develop technical infrastructure and cultivate expertise to enforce regulations effectively.
Consumer protection will be essential for long-term success. Public awareness campaigns and education initiatives will play important roles in building trust and facilitating adoption.
The country’s reputation for strict government control and limited internet access may also affect how international crypto businesses view the new opportunities.
The Digital Asset Revolution Continues
Turkmenistan’s decision reflects a global trend toward formalizing cryptocurrency regulation. The country joins a growing list of nations creating comprehensive frameworks for digital assets while maintaining government oversight.
The success of this initiative will likely influence other countries in the region and provide valuable insights into how emerging economies can balance innovation with regulatory control in the digital asset space.