Turkmenistan has passed a law legalising and regulating digital assets, including licensing for cryptocurrency exchanges and crypto mining companies, a rare policy opening in one of the world’s most closed economies.
The state media said President Serdar Berdymukhamedov signed the “Law on Virtual Assets” on Nov. 28 and it will take effect on Jan. 1, 2026.
A government spokesperson said the measure is intended to “help attract investment and stimulate digitalization,” adding that it sets rules for the creation, storage, placement, use and circulation of virtual assets and defines their legal and economic status.
The move comes as Turkmenistan, a mostly desert Central Asian state with the world’s fourth-largest gas reserves, looks for ways to diversify beyond natural gas exports, most of which go to China.
Details of how licensing will work, including capital requirements and operational standards for exchanges and miners, were not immediately clear.
Authorities have historically maintained tight control over financial flows and information access, factors that could shape market uptake even after the law enters into force.
Regional peers have moved faster in crypto policy. Kyrgyzstan has positioned itself as a leader, including by launching a national stablecoin in partnership with cryptocurrency exchange Binance, Reuters reported.
Turkmenistan’s digital foundations also remain uneven. Data compiled by DataReportal estimated internet penetration at 46.1% by end-2025, while other datasets show lower levels in prior years.
The country’s fixed official exchange rate has long diverged from the parallel market rate, according to rights groups and past Reuters reporting, underscoring the incentives for informal value storage that regulators may now seek to bring onshore.
The law signals state-led experimentation rather than liberalisation. If the government pairs licensing with cheap, reliable power, mining could attract offshore interest; but strict controls on connectivity and capital movement may limit the size of any domestic trading ecosystem.