Turkmenistan legalizes mining and crypto exchanges

Turkmen President Serdar Berdimuhamedov signed the "Law on Virtual Assets," which legalizes cryptocurrency mining and the operation of cryptocurrency exchanges and exchangers in the country. This important step in the development of the digital economy will come into force on January 1, 2026, as reported by the Neutral Turkmenistan newspaper on November 28.

Main Provisions of the Law

The law regulates relations arising from the creation, issuance, storage, placement, use, and circulation of virtual assets in Turkmenistan. It also defines the legal, economic, and organizational framework for working with cryptocurrencies. It is important to note that cryptocurrencies in Turkmenistan can be subject to civil law, but are not considered a means of payment, currency, or security. They can be either secured or unsecured.

Mining Conditions

Both individual entrepreneurs and legal entities can engage in mining. All participants are required to register electronically with the Central Bank of Turkmenistan. The law specifically prohibits hidden mining, which is the use of someone else's computing power to mine cryptocurrency without the owner's knowledge.

Licensing of Cryptocurrency Exchanges and Exchangers

Cryptocurrency exchanges and exchangers that provide virtual asset services will be licensed by the central bank. Opening a wallet on such a platform will only be possible after full identification in accordance with the anti-money laundering law. The state is not liable for the obligations of crypto platforms.

Advertising and Consumer Protection

The law also establishes requirements for cryptocurrency advertising. Advertising materials must contain risk warnings, information about the potential total loss of funds, and the fact that these assets are not legal tender in the country. Advertising must not contain promises of profitability, information about luxury goods, bonuses, or discounts, or images of minors, nor must it portray cryptocurrencies as an easy way to get rich.

In Conclusion

The legalization of mining and crypto exchanges in Turkmenistan opens new horizons for the development of the country's digital economy. The measures adopted are aimed at creating a safe and regulated environment for market participants, which could facilitate investment and the development of new technologies. With the law coming into force in 2026, Turkmenistan could become a significant player in the Central Asian cryptocurrency market.