Turkmenistan has taken a rare step toward opening part of its tightly controlled economy, formally allowing cryptocurrency mining and trading under a new legal framework that came into force this week.
The move places digital asset activity under direct state oversight while stopping short of embracing crypto as everyday money.
Key takeaways
Crypto mining and trading are now legal in Turkmenistan under a licensing regime.
Exchanges and miners will be supervised by the central bank.
Cryptocurrencies are not recognized as legal tender.
The policy aims to diversify a gas-dependent economy without loosening state control.
The legislation, signed in late November by President Serdar Berdymukhamedov, introduces a licensing system for crypto exchanges and mining firms overseen by the central bank. For the first time, cryptocurrencies are formally defined within the country’s legal and economic framework, a notable shift for one of the world’s most closed nations.
Despite the legalization, strict boundaries remain in place. Digital assets cannot be used for payments, and internet access continues to be tightly regulated by the government.
As a result, crypto activity is expected to function primarily as a controlled investment and industrial sector rather than a tool for everyday financial use.
A Controlled Bet on Digital Assets
Turkmenistan’s economy has long relied on its vast natural gas reserves, which rank among the largest globally. Officials have positioned the new crypto law as part of a broader strategy to introduce alternative revenue streams and support digital development without disrupting the existing economic model.
Government representatives cited by Reuters said the framework is intended to attract investment while maintaining firm oversight. The approach mirrors other recent, tightly managed reforms, including the introduction of electronic visas aimed at modestly easing access for foreign visitors.
For now, Turkmenistan’s embrace of crypto remains highly selective. Mining and trading are permitted, but only within a structure designed to preserve centralized control — signaling diversification ambitions without a broader shift toward financial liberalization.
