Turkmenistan Legalizes Crypto Mining Under Civil Law

Source: CryptoTale Original Title: Turkmenistan Legalizes Crypto Mining Under Civil Law Original Link: https://cryptotale.org/turkmenistan-legalizes-crypto-mining-under-civil-law/ Turkmenistan legalized crypto mining and exchanges on January 1, 2026, formalizing digital assets under civil law. President Serdar Berdimuhamedow signed the law in late November 2025, placing oversight with the central bank. The move aims to attract capital and expertise while retaining monetary control, notably by rejecting crypto as legal tender or security.

From Informal to Licensed Activity

The new Law on Virtual Assets is Turkmenistan’s first formal recognition of digital assets. It creates a licensing system for miners, exchanges, and custodians. According to the legislation, only approved entities and registered entrepreneurs may operate, ensuring controlled market entry.

Notably, the law allows individual miners, mining pools, and registered nonresidents to participate. This setup allows some foreign investment while keeping strong government control. At the same time, mining without a license is still illegal, showing the state prefers activity it can monitor and track.

Crypto is now legally treated as digital property. However, it cannot be used to pay for goods, settle taxes, or handle official payments. This keeps the national currency at the center of the economy while still allowing regulated crypto trading.

The central bank manages licensing and compliance in the sector. The Cabinet of Ministers and the Ministry of Finance and Economy also supervise operations. Together, they run routine inspections and can suspend licenses if rules are broken.

Compliance Rules Define the Operating Boundaries

The framework imposes strict operational standards on exchanges and custodians. Licensed platforms must implement Know Your Customer and Anti-Money Laundering procedures. These rules bring crypto activity in line with existing financial controls.

The law requires most user funds to be kept in cold storage, which helps lower hacking risks and protect customer assets. Exchanges also have to report their activity to regulators, reducing anonymity.

Traditional banks are still not allowed to offer crypto services. This keeps digital assets separate from the regular banking system. Furthermore, branding rules prohibit private firms from using “state,” “national,” or “Turkmenistan” in company names.

These provisions maintain a clear divide between private operators and official institutions. As a result, crypto activity functions as a licensed service industry, not a parallel financial system. The structure reinforces centralized supervision at every operational stage.

Energy Strategy and Regional Regulatory Context

Turkmenistan’s gas-dependent economy provides context for the mining decision. The country relies heavily on natural gas exports with China as its primary buyer. Mining offers a regulated path to monetize surplus energy capacity.

However, feasibility questions remain due to strict internet controls. The government tightly regulates online access, which affects mining operations. Consequently, development may proceed selectively rather than at scale.

The timing also shows broader regional movement. Kazakhstan and Uzbekistan already operate regulated crypto frameworks. Pakistan has explored mining, although international lenders rejected subsidized electricity use.

Turkmenistan maintains a policy of permanent neutrality and is not a formal Russian ally. Still, the law aligns with Eurasian efforts to expand mining capacity beyond the United States. Russia has recently pushed domestic mining into licensed and taxed channels.

As the 2026 fiscal year begins, Turkmenistan combines digital reform with controlled openness. Earlier, the government introduced electronic visas to ease foreign entry. Now, crypto licensing is handled with the same strict control.

The law treats digital assets as an economic tool, not a replacement for the financial system. Oversight, limits on payments, and licensing keep everything aligned with existing rules. Together, these steps show Turkmenistan’s carefully managed move into regulated digital activity.

Turkmenistan’s crypto law brings mining and exchanges into civil law under strict supervision. The framework legalizes activity while enforcing licensing, compliance, and payment restrictions. As a result, digital assets operate within defined boundaries, consolidating control while enabling regulated participation.