New crypto laws aim to diversify economy beyond natural gas
Turkmenistan has entered the new year with a significant policy shift, formally legalizing cryptocurrency exchanges and mining operations. The move marks a notable step for one of Central Asia’s most tightly controlled economies, signaling cautious openness toward digital assets while maintaining strict regulatory oversight.
A law signed in late November came into force on January 1, making crypto mining and trading fully legal across Turkmenistan. Both domestic and foreign participants are permitted to operate, provided they complete official registration. The legislation also allows the formation of crypto mining pools, opening the door to industrial-scale operations.
The policy is widely viewed as an effort to leverage surplus energy resources, particularly from natural gas, to diversify national revenue streams. Neighboring countries have followed similar paths, using excess electricity to support energy-intensive mining activities.
Regulated Crypto Exchange Framework
Under the new rules, locally based crypto exchanges must obtain licenses and comply with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) standards. Exchanges are also required to meet cold storage and security requirements, reinforcing a controlled approach to market participation.Importantly, the law clarifies that cryptocurrencies are not recognized as legal tender, currency, or securities within the country.
Crypto adoption across Central Asia has grown steadily in recent years. However, Turkmenistan’s restricted internet access and strict financial oversight may slow uptake compared to regional peers, despite the newly established legal framework.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.