Turkmenistan has passed its first comprehensive crypto legislation, legalizing mining and trading while enforcing tough compliance rules beginning January 2026.
Key Takeaways
- New law legalizes crypto mining and exchanges starting January 1, 2026, under a regulatory framework signed by President Serdar Berdimuhamedov.
- Miners and exchanges must register or be licensed through the Central Bank of Turkmenistan and comply with technical, safety, and advertising standards.
- Cryptocurrencies will not be legal tender, but are recognized under civil law as digital assets, either secured or unsecured.
- Strict advertising rules and naming restrictions aim to prevent misleading promotion and protect state identity.
What Happened?
Turkmenistan has officially legalized cryptocurrency mining and trading through a new law that will take effect in 2026. Signed by President Serdar Berdimuhamedov, the “Law on Virtual Assets” provides a legal foundation for the use, storage, and circulation of digital currencies, though it stops short of recognizing them as official payment methods.
This move aligns Turkmenistan with neighboring Central Asian countries like Kazakhstan and Uzbekistan, which have been rapidly developing their own crypto policies in recent years.
LATEST: 🇹🇲 Turkmenistan has passed a new law that legalizes and regulates digital assets, including crypto exchanges and mining, with the law set to come into effect on Jan. 1, 2026. pic.twitter.com/X58d3O59J6
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Crypto Mining and Exchange Regulation Begins
Under the new law, both individual entrepreneurs and legal entities will be allowed to mine cryptocurrencies. However, these operators must register electronically with the Central Bank of Turkmenistan. Once approved, they will receive an indefinite certificate authorizing their activities.
Mining operations must also:
- Register each piece of equipment with authorities.
- Provide valid crypto wallets.
- Meet technical and fire safety standards.
- Avoid unauthorized use of others’ computing power.
The framework strictly prohibits covert mining, reinforcing transparency and ethical operations.
Cryptocurrency exchanges will operate under a licensing regime and be overseen by the national monetary authority. These platforms must comply with know-your-customer (KYC) rules in accordance with Turkmenistan’s anti-money laundering legislation. Anonymous wallets and transactions will not be permitted under this new framework.
Strict Compliance on Advertising and Brand Naming
The law introduces some of the strictest advertising rules in the region for the digital asset sector:
- All marketing materials must clearly state that digital assets are not legal tender, and the state holds no liability for their value.
- Ads must feature risk warnings, especially on the potential loss of all funds.
- Use of luxury imagery, minors, profit promises, or bonus offers is completely banned.
- Companies in the crypto sector cannot use the words “Turkmenistan,” “Turkmen,” “Turkmeni,” “state,” or “national” in any part of their name or branding.
- Non-crypto businesses are also banned from using terms like “virtual asset,” “cryptocurrency,” or “digital asset” in unrelated promotions.
Digital Assets Recognized Under Civil Law
While the law does not treat cryptocurrencies as currency or securities, it does recognize them as digital property, categorized into secured and unsecured types. This classification provides clarity on how digital assets will be governed under Turkmen civil law. The government also reserves the right to cancel token issuances and mandate returns under certain conditions.
Central Asia’s Rising Crypto Landscape
Turkmenistan’s new legislation mirrors steps taken by its neighbors:
- Kazakhstan recently announced plans for a state crypto reserve worth up to $1 billion.
- Kyrgyzstan has launched a gold-backed stablecoin and enabled crypto escrow accounts.
- Uzbekistan rolled out licensing for mining pools and a full framework for digital asset trading.
The move also ties into Turkmenistan’s broader economic goals, as the country seeks to diversify beyond its massive gas reserves, which are the fourth largest in the world.
CoinLaw’s Takeaway
In my experience watching crypto adoption across emerging markets, this is a big move for a country like Turkmenistan. It’s not just about mining and trading anymore. It’s about building an entire digital asset economy from the ground up. I found the clarity and depth of Turkmenistan’s law impressive, especially its focus on compliance, risk education, and responsible branding. While it’s still cautious by keeping cryptocurrencies out of the payment system, it lays a solid foundation for future growth and investment. For Central Asia, this is another signal that the region is fast becoming a new crypto frontier.
