Turkmenistan legalizes crypto mining and crypto exchanges with new national law

Turkmenistan has taken an important step towards regulating the digital economy. The country has officially legalized crypto mining and the operation of crypto exchanges. The new Virtual Assets Act, signed by President Serdar Berdymuchamedov, will come into effect on January 1, 2026.

First legal framework for digital assets in Turkmenistan

With the introduction of the law, Turkmenistan will for the first time have a clear legal framework for creating, storing and trading digital assets, including cryptocurrencies. Although crypto coins are not recognized as an official means of payment, they are seen as property under civil law.

The government emphasizes that it bears no financial responsibility for crypto platforms or possible declines in the value of digital assets. Investing remains entirely at your own risk.

Registration required for crypto miners

Anyone who wants to mine cryptocurrency must register with the Central Bank of Turkmenistan. This obligation applies to both individual entrepreneurs and companies.

Hidden or unauthorized mining, which, for example, secretly uses someone else’s computing power, is expressly prohibited. The government wants to combat illegal practices and energy abuse.

License for crypto exchanges and service providers

Crypto exchanges and other companies active in the crypto sector can only access the market with an official license from the Central Bank. Regulated providers may, among other things, exchange, store, manage and transfer digital assets. The offering of new digital tokens will also be permitted.

Customers wishing to open a wallet must be fully identified according to anti-money laundering guidelines, in line with international standards.

Strict conditions for foreign participation

Foreigners are allowed to set up a crypto exchange in Turkmenistan, but there are severe restrictions. Individuals or companies from offshore jurisdictions are excluded. Founders with bank accounts in such areas are also not eligible for a permit.

The aim of this is to increase transparency and reduce financial risks.

Turkmenistan is implementing one of the strictest crypto advertising regulations in the region

The new law contains strict provisions on crypto advertising. All advertisements must include a warning that digital assets are not guaranteed by the state and that investing involves risks.

In addition, several forms of advertising are prohibited:

• Promises of guaranteed profits
• Use of photos or images of minors
• Commercials that suggest luxury, wealth or effortless profit
• References to the state, such as terms “Turkmenistan”, “national” or “Turkmen”
• Use of terms like “cryptocurrency” or “digital assets” by companies not active in the sector

These rules are intended to better protect citizens against misleading marketing.

Alignment with regional trend of crypto regulation

With this law, Turkmenistan joins other countries in Central Asia that are legalizing and regulating the crypto sector. For example, Kazakhstan also recently passed legislation regulating digital asset trading at the national level.

With the new law, Turkmenistan has opted for a strictly regulated approach in which innovation remains possible, but consumer protection is central.