Turkmenistan Legalises Cryptocurrency Mining and Exchanges Under New Civil Law Framework

Landmark Policy Shift in a Closed Economy

In a notable departure from its traditionally restrictive economic model, Turkmenistan has formally legalised cryptocurrency mining and exchange operations. The new legislation, signed on January 1, 2026 by President Serdar Berdimuhamedov , provides official legal recognition to crypto-related activities and places virtual assets within the country’s civil law framework. The move represents one of the most significant financial policy changes in the gas-rich Central Asian nation in recent decades.

Legal Status of Cryptocurrencies

Under the new law, cryptocurrencies are classified as virtual assets regulated by civil legislation. The government has clearly stated that digital currencies will not be recognised as legal tender, national currency, or securities. This distinction limits their function strictly to asset-based transactions, ensuring that the traditional monetary system remains unaffected while still allowing controlled participation in the crypto ecosystem.

Licensing Regime and Central Bank Oversight

A central pillar of the framework is the introduction of mandatory licensing for cryptocurrency exchanges. These exchanges will operate under the supervision of the country’s central monetary authority, reinforcing state oversight in line with Turkmenistan’s tightly managed financial system. Officials argue that the licensing model will improve transparency, monitoring, and regulatory clarity, even as broader digital freedoms and internet access remain highly restricted.

Economic Context and Strategic Intent

Turkmenistan’s economy remains heavily dependent on natural gas exports, with China as its principal buyer. The government is also pursuing long-term diversification strategies, including the TAPI pipeline project supplying gas to Afghanistan, Pakistan and India. Analysts view the crypto law as a cautious step towards limited economic modernisation without diluting centralised state control.

Important Facts for Exams

• Turkmenistan legalised crypto mining and exchanges in January 2026

• Cryptocurrencies are treated as virtual assets under civil law

• Digital currencies are not legal tender or securities

• Crypto exchanges require licensing and central bank supervision