Turkmenistan legalized cryptocurrency mining and cryptocurrency exchanges on Thursday, setting out a new regulatory approach for “virtual assets” under a law signed by President Serdar Berdimuhamedov.
The legislation brings cryptocurrencies under civil law and creates a licensing scheme for cryptocurrency exchanges, with oversight by the country’s central bank.
While the framework legalizes crypto activity, the law draws a clear boundary on use. Digital currencies will not be recognized as a means of payment, currency, or security in Turkmenistan.
The change also comes as Turkmenistan continues to tightly regulate internet access and communications, according to the report. The country is described as one of the world’s most closed and isolated nations.
Turkmenistan’s broader economic profile is still closely tied to natural gas exports. The report says the country relies heavily on sales of its vast gas reserves, with China identified as the main importer.
Turkmenistan is also working on a pipeline intended to supply gas to Afghanistan, Pakistan and India, the report added. In that context, the move to regulate crypto mining and exchanges is presented as part of a wider shift in how the government manages tightly controlled aspects of the economy.
The report also notes that Turkmenistan adopted a law introducing electronic visas in April last year, aimed at simplifying entry for foreigners. It said that after gaining independence in 1991, the country typically imposed strict entry requirements and often turned down visa applications for unclear reasons.