Turkmenistan has officially enacted a landmark law to legalize and regulate the digital asset sector, signaling a significant pivot for one of Central Asia’s most isolated economies. The “Law on Virtual Assets,” signed by President Serdar Berdymukhamedov, officially entered into force on January 1, 2026. This new legislation establishes a formal framework for the creation, storage, and circulation of digital assets, allowing cryptocurrency exchanges and mining companies to operate legally within the country for the first time, provided they secure official licenses overseen by the Central Bank.
The regulatory framework introduces strict parameters to ensure oversight and security within the burgeoning market. While digital assets are now recognized under civil law as property, they are not classified as legal tender, currency, or securities, meaning that using crypto for retail payments, wages, or debt settlement remains prohibited. Furthermore, both domestic and foreign entities must undergo mandatory state registration, and licensed exchanges are required to implement full Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to combat illicit financial flows.
Strategic economic diversification serves as a primary driver for this legislative shift. Holding the world’s fourth-largest natural gas reserves, Turkmenistan has historically relied almost exclusively on gas exports to China, but the government now aims to attract foreign investment and stimulate digitalization. Analysts suggest that Turkmenistan’s significant surplus energy could make it an attractive hub for industrial-scale mining, potentially following the path of neighboring Kazakhstan, which became a global mining heavyweight in recent years.
The law also introduces some of the strictest advertising rules in the region to protect consumers and national identity. All marketing materials must clearly state that digital assets are not legal tender and that the state holds no liability for their value. Additionally, crypto companies are explicitly forbidden from using words such as “state,” “national,” or “Turkmenistan” in their branding. With this move, Turkmenistan joins its neighbors in establishing a regulated crypto ecosystem, reflecting a broader trend of digital asset adoption across the Central Asian landscape.
