Turkmenistan legalizes cryptocurrency mining and trading under new law

A new law signed by President Berdimuhamedov allows crypto activity, but strict internet controls and payment bans remain firmly in place.

Turkmenistan has officially legalized cryptocurrency mining and trading, a major policy transformation for one of the world’s most isolated countries with a population of just over 7 million.

The new law was signed by President Serdar Berdimuhamedov on Thursday.

New legislation

According to the Associated Press report, the law places virtual assets under civil law introduces a licensing framework for cryptocurrency exchanges supervised by the central bank. However, digital assets are not recognized as a means of payment, currency or security.

Internet access in Turkmenistan is also still severely restricted by the state, which may limit the practical use of cryptocurrencies. The move comes as the Central Asian country remains heavily dependent on its natural gas sector to support the economy. It is currently developing a pipeline project to supply gas to Afghanistan, Pakistan and India.

Turkmenistan is gradually moving towards greater use of digital systems in both public administration and economic policy. In April 2025, authorities passed a law allowing electronic visas to make it easier for foreigners to enter the country.

After Turkmenistan gained independence in 1991, it gained a reputation for strict border controls, and many visa applications were rejected for no apparent reason. In 1995, the country declared itself a neutral state under then-President Saparmurat Niyazov, who limited foreign influence and led a highly controlled political system until his death in 2006.

During that period, the economy remained highly dependent on gas exports, and now China is the main buyer. Since taking office in 2022, President Serdar Berdimuhamedov has shown signs of a limited opening.

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Another former Soviet Central Asian republic, Kyrgyzstan, is also working to boost its digital asset ambitions in April, after Binance founder Changpeng “CZ” Zhao signed a Memorandum of Understanding (MoU) with the country’s National Investment Agency (NIA).

The agreement, which was announced by President Sadyr Zhaparov on April 3, aims to support the development of the Kyrgyz cryptocurrency and blockchain ecosystem. The partnership will collaborate on regulatory advice, infrastructure development and education programs.

According to officials, the focus will be on improving technological infrastructure, improving security of digital assets and training local specialists in areas such as blockchain, cybersecurity and virtual asset management. The NIA said the collaboration aims to help position Kyrgyzstan as a regional hub for blockchain innovation in Central Asia.