New law introduces licensing, AML rules, and state-managed ledgers while classifying digital assets into backed and unbacked categories.
Turkmenistan Launches Regulated Crypto Framework
Turkmenistan has taken a major policy step by legalizing cryptocurrency trading while enforcing strict state oversight, with the law set to take effect in 2026. President Serdar Berdimuhamedov signed the legislation, marking a significant shift for one of the world’s most closed economies.
The new law introduces comprehensive licensing requirements for crypto exchanges and custodial services. It mandates know-your-client (KYC) protocols, Anti-Money Laundering (AML) compliance, and cold storage safeguards. Credit institutions are prohibited from offering crypto services, and the state reserves the authority to halt, void, or force refunds of token issuances.
Mining and Ledger Oversight
Cryptocurrency mining and mining pool operations now require official registration, with covert activities explicitly banned. The law allows the central bank to authorize or operate permissioned distributed ledgers, potentially requiring citizens to transact on state-monitored infrastructure.
Digital assets are divided into backed and unbacked categories, with regulators setting rules for liquidity, settlement, and emergency redemption for backed assets. Importantly, cryptocurrencies remain neither legal tender nor securities under Turkmen law.
Turkmenistan joins a growing list of countries creating structured frameworks for digital assets. Globally, regulators are aligning on stablecoin oversight, taxation, and DeFi compliance, as authorities in the UK, US, and Sweden adjust rules to integrate crypto into financial systems.
For Turkmenistan, a country dominated by a centralized presidential system and heavily reliant on natural gas exports, this law signals cautious engagement with blockchain technology while maintaining tight governmental control over the sector.
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.