Turkmenistan has taken a major step into the digital asset space by legalizing cryptocurrency mining and exchange operations. A new legal framework, known as the Law on Virtual Assets, will take effect on January 1, 2026. The move signals a clear policy shift for a country long known for strict economic controls .
The law allows the creation, trading, and mining of cryptocurrencies such as Bitcoin. However, operators must first obtain licenses from state authorities. While the government now supports regulated crypto activity, it still blocks the use of digital assets as legal tender.
What the New Crypto Law Allows
The new legislation places digital assets under civil law. This change gives crypto holders and businesses a clearer legal standing. Furthermore, it defines how mining, storage, and trading should operate within the country.
Under the framework, crypto assets count as property rather than money. Therefore, residents cannot use Bitcoin or other cryptocurrencies for daily payments or salaries. Still, they can legally mine, hold, and trade these assets through approved platforms.
Key elements of the law include:
- Mandatory licensing for miners, exchanges, and custodial services
- Oversight from financial regulators, including the central bank
- Required compliance with AML and KYC standards
- A ban on secret or unauthorized mining activities
- Risk warnings in all crypto-related advertising
Why Turkmenistan Is Making This Move
Turkmenistan controls large energy reserves, which makes crypto mining an attractive option. Bitcoin mining needs cheap and stable power, and the country can offer both. As a result, officials hope to draw foreign investment and new technology partners.
Moreover, the government appears eager to modernize parts of its economy without giving up control. By regulating crypto instead of banning it, Turkmenistan can monitor activity while benefiting from new revenue streams.
Despite this progress, crypto remains outside the official payment system. The government continues to protect its national currency and banking structure. Therefore, everyday crypto use will stay restricted for now.
Even so, the law marks a rare opening in Turkmenistan’s financial landscape and could reshape its role in the global crypto mining market.
