Turkmenistan Legalizes Cryptocurrency Mining and Trading

In a major economic policy shift, Turkmenistan has officially legalized cryptocurrency mining and exchanges. Known for its tightly controlled economy and isolation, the country is now cautiously opening its digital sector.The move is seen as part of broader efforts to modernize governance and reduce dependence on natural gas exports while still maintaining strict state oversight over financial activities.

Why in the News?

Turkmenistan has passed a new law legalizing cryptocurrency mining and exchanges from January 2026. The legislation was signed by Serdar Berdimuhamedov, marking a significant policy change in one of the world’s most closed economies.

What Does the New Crypto Law Provide?

• The new legislation brings virtual assets under civil law and introduces a licensing system for cryptocurrency exchanges.
• These licenses will be regulated by the country’s central bank, ensuring strong government oversight.
• However, cryptocurrencies will not be recognized as legal tender, currency, or securities.
• This means digital assets can be mined and traded but cannot be used for everyday payments, reflecting a cautious and controlled approach to financial reform.

Why Is This a Big Economic Shift?

• Turkmenistan’s economy is heavily dependent on natural gas exports, making it vulnerable to global energy price changes.
• By legalizing crypto-related activities, the government aims to diversify economic avenues and attract technological investment.
• This step also signals limited economic opening under President Berdimuhamedov, who has been in office since 2022.
• However, the state continues to tightly regulate digital and financial activities.

Background of Turkmenistan’s Economy

• A former Soviet republic, Turkmenistan gained independence in 1991 and declared permanent neutrality in 1995.
• It holds the world’s fourth-largest natural gas reserves and relies heavily on exports, mainly to China.
• Historically, the country maintained strict visa rules, limited internet access, and controlled media.
• Recent steps like e-visas and digital reforms show cautious economic modernisation without political liberalisation.

Key Summary At Glance

Question

Q. Cryptocurrency mining and exchanges in Turkmenistan will be regulated by,

A. Ministry of Energy
B. Ministry of Finance
C. Central Bank
D. Parliament