Turkmenistan Legalizes Cryptocurrency Mining and Exchanges in Economic Shift
By News Agencies | Published on January 2, 2026
Turkmenistan, one of the world’s most isolated nations, has taken a significant step toward economic modernization by officially legalizing cryptocurrency mining and exchanges. This landmark move marks a major shift for the country, which has long maintained a tightly controlled, gas-dependent economy.
New Legislation Signed by the President
On Thursday, President Serdar Berdimuhamedov signed legislation that brings virtual assets under civil law regulation. The new law establishes a licensing system for cryptocurrency exchanges, which will be overseen by Turkmenistan’s central bank. While this formal recognition enables legal crypto activities within the country, digital currencies will still not be recognized as legal tender, securities, or a means of payment.
Context: Turkmenistan’s Economy and Digitalization Efforts
Since gaining independence from the Soviet Union in 1991, Turkmenistan has relied heavily on exporting its vast natural gas reserves, primarily to China, to sustain its economy. The country is also developing a new pipeline project to supply natural gas to neighboring Afghanistan, Pakistan, and India.
Under the leadership of Serdar Berdimuhamedov, who succeeded his father as president in 2022, Turkmenistan has signaled modest openings in its tightly controlled political and economic environment. This includes embracing digital technologies to modernize various sectors, including government operations. Notably, in April 2025, Turkmenistan adopted a law introducing electronic visas aimed at simplifying entry for foreigners—an important shift given the nation’s historically restrictive visa policies.
A History of Isolation and Control
Turkmenistan has a population of approximately seven million and is located mostly within a desert region. The country possesses the world’s fourth-largest natural gas reserves. In 1995, under its first president, Saparmurat Niyazov, Turkmenistan declared itself permanently neutral. Niyazov enforced a strict policy of isolationism, maintaining tight control over political life and heavily restricting foreign influences from both the West and Russia until his death in 2006. Since then, the country has been gradually opening up under the Berdimuhamedov family. President Serdar Berdimuhamedov recently hinted at possible political reforms during a summit with leaders from Russia, Turkey, and Iran. He stated that Turkmenistan is working to transform itself into “a powerful, democratic, and rule-of-law state where citizens live happy lives,” though he did not provide further specifics.
Internet and Media Environment Remains Restrictive
Despite these reforms, Turkmenistan’s internet remains heavily regulated by the government. While social media restrictions have been eased slightly, the country is still ranked among the worst in the world for independent media freedom by the Committee to Protect Journalists. Nonetheless, the government has pledged to open new air transport links and further liberalize its visa regime.
Regional Context
Turkmenistan is not alone in Central Asia in exploring cryptocurrency’s potential. Kyrgyzstan, another former Soviet republic in the region, has positioned itself as a leader in the crypto sector by launching a national stablecoin in partnership with the global cryptocurrency exchange Binance.
As Turkmenistan embarks on this gradual transformation, legalizing crypto mining and exchanges signals its intent to diversify the economy beyond natural gas exports, embracing digital innovation within a traditionally restrictive political landscape.
For ongoing updates on global crypto regulation and Central Asian developments, stay tuned to Al Jazeera Crypto News.