Crypto Mining Legalized in Turkmenistan, but Everyday Use Remains Prohibited

Turkmenistan has officially legalized crypto mining and exchanges under the new Law on Virtual Assets effective January 1, 2026. The legislation was signed by President Serdar Berdimuhamedov on November 28, 2025, and introduces a licensing regime for miners, exchanges, and custodians. This move marks one of the most notable economic shifts in the tightly controlled Central Asian nation in recent years.

Under the new law, only licensed companies can operate in the crypto space, and all activities are subject to oversight by the Cabinet of Ministers and the Ministry of Finance and Economy. The government aims to use the legal framework to attract investment and technological expertise while maintaining control over the sector.

Digital currencies, however, are not recognized as legal tender or a means of payment. The use of crypto for everyday transactions is still prohibited, and the government continues to regulate internet access strictly.

Why the Move Happened

Turkmenistan's economy has long been dependent on natural gas exports, with China as the primary buyer. The country has recently introduced reforms, including electronic visas for foreigners, to encourage foreign investment and economic diversification. Legalizing crypto mining is viewed as a way to utilize surplus energy and generate additional revenue.

The timing of the law also aligns with broader regional and global trends, including Russia's push to regulate its large-scale mining operations. Turkmenistan's policy of permanent neutrality has not aligned it with Russia, but the move fits into a wider Eurasian trend of exploring crypto mining as an economic tool.

How the Law Affects Mining and Exchanges

The new legislation does not allow for widespread adoption of crypto in everyday life. Digital currencies cannot be used for payments, and the internet remains tightly controlled by the government.

Mining operations are subject to strict licensing and oversight. Only licensed companies can conduct mining, and they must meet stringent regulatory standards. The law also empowers regulators to suspend or revoke licenses for non-compliance.

The law introduces a formal regulatory framework for exchanges and custodians, placing them under the supervision of the central bank. This structure is intended to prevent unlawful activities while promoting technological innovation.

What Analysts Are Watching

The feasibility of large-scale mining in Turkmenistan remains uncertain due to the country's tight internet and energy regulations. Analysts note that the state retains full control over the sector, including licensing, payment restrictions, and central bank oversight.

The law is seen as a cautious, state-led reform rather than a full liberalization. It is unlikely to lead to rapid development of the mining sector in the short term.

Investors and analysts will be watching whether the government introduces additional reforms to support the growth of the sector. The success of Turkmenistan's crypto mining industry will depend heavily on how effectively the government manages internet access and energy distribution.