Turkmenistan has kicked off the new year with a major policy shift, officially legalizing cryptocurrency exchanges and crypto mining. The new regulations, which came into force on January 1, mark a significant step in the country’s gradual move toward economic diversification and digital innovation.
The law was signed by President Serdar Berdimuhamedow in late November and opens the door for both domestic and foreign participants to operate in Turkmenistan’s emerging crypto sector, under strict regulatory oversight.
Crypto Mining and Exchanges Now Legal in Turkmenistan
Under the new legislation, crypto mining and trading are now fully legal activities in Turkmenistan. Both local and non-resident miners are allowed to operate in the country, provided they complete the required registration process. The law also permits the creation and operation of crypto mining pools, making large-scale mining projects possible.
Turkmenistan-based crypto exchanges must obtain official licenses and comply with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) requirements. In addition, exchanges are required to meet specific cold storage standards to protect user funds. Despite these developments, the government has clarified that cryptocurrencies are not recognized as legal tender, currency, or securities within the country.
This move could allow Turkmenistan to make productive use of its surplus energy, particularly given its heavy reliance on natural gas exports. By following a similar path to neighboring Kazakhstan, which became a major Bitcoin mining hub after China’s 2021 mining ban, Turkmenistan may be positioning itself as a regional player in crypto mining.
Regional Context and Challenges to Adoption
The decision comes as several countries in the region advance their crypto strategies. Kazakhstan remains a key mining center, while Pakistan has made notable progress in crypto regulation in recent years. Pakistan’s efforts include establishing a dedicated virtual assets regulator, allowing major exchanges like Binance and HTX to operate, building a Bitcoin reserve, and appointing former Binance CEO Changpeng “CZ” Zhao as a strategic adviser.
Despite the new legal framework, crypto adoption in Turkmenistan may progress more slowly. The country is known for strict government controls on internet access, close monitoring of financial activities, and limited levels of foreign investment. These factors could pose challenges for large-scale international participation in the short term.
Still, legalizing crypto exchanges and mining signals a meaningful shift for one of the world’s more closed economies. If implemented effectively, the new laws could help Turkmenistan modernize parts of its financial system and reduce its dependence on traditional energy exports over time.
