Turkmenistan Legalizes Cryptocurrency Mining and Exchange, Tightens Central Bank Control
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Turkmenistan, long considered one of the world’s most isolated nations, has taken a significant step toward economic diversification by officially legalizing the mining and exchange of cryptocurrency. The move, enacted through legislation signed by President Serdar Berdimuhamedov on Thursday, January 2, 2026, establishes a licensing scheme overseen by the country’s central bank, marking a major shift for the gas-dependent economy.
Despite the legalization, digital currencies will not be recognized as a formal means of payment, currency, or security within Turkmenistan. This nuanced approach suggests a cautious integration of the burgeoning digital asset class.
A Gas-Rich Nation Seeks Diversification
For decades, Turkmenistan has relied heavily on its vast natural gas reserves – the fourth-largest in the world – to fuel its economy. China currently serves as the country’s primary importer of gas, and ongoing infrastructure projects, including a pipeline intended to supply Afghanistan, Pakistan, and India, aim to expand its energy export capabilities. However, the government recognizes the need to reduce its economic dependence on a single commodity.
This latest legislation reflects a broader trend toward digitalization within Turkmenistan. In April 2025, the country adopted a law introducing electronic visas, streamlining the entry process for foreign visitors. This move signaled a departure from the historically strict entry requirements that often resulted in unexplained visa denials.
From Isolationism to Cautious Opening
Turkmenistan declared its official neutrality in 1995 under its first president, Saparmurat Niyazov, who actively resisted both Western and Russian influence. Niyazov maintained a firm grip on political power and pursued a policy of isolationism until his death in 2006.
Since succeeding his father as president in 2022, Serdar Berdymukhamedov has indicated a willingness to embrace limited reforms. In December 2025, ahead of a meeting with the leaders of Russia, Turkey, and Iran, Berdymukhamedov stated, “We are carrying out extensive work aimed at transforming our neutral country into a powerful, democratic, and rule-of-law state where citizens live happy lives.”
While the country’s internet remains heavily regulated, the government has begun to ease restrictions on social media and has pledged to improve air transport links and liberalize its visa system. However, Turkmenistan continues to rank among the most restrictive nations globally for independent media, according to the Committee to Protect Journalists.
Regional Context and Future Outlook
Turkmenistan is not alone in Central Asia in exploring the potential of cryptocurrency. Kyrgyzstan has emerged as a regional leader in the sector, recently launching a national stablecoin in partnership with cryptocurrency exchange Binance.
The licensing scheme established by President Berdimuhamedov will be crucial in shaping the future of cryptocurrency within Turkmenistan. The central bank’s oversight will likely focus on preventing illicit financial activity and ensuring the stability of the financial system.
The long-term impact of this legislation remains to be seen, but it represents a notable step toward economic diversification and a cautious opening to the global digital economy.
