Turkmenistan Approves Cryptocurrency Use Starting 2026, While Retaining Strict State Control
Jakarta, December 1, 2025 — Turkmenistan has officially authorized the use of cryptocurrency assets under a tightly regulated legal framework, marking a significant development for one of the world’s most closed economies. The policy, signed into law by President Serdar Berdimuhamedov on November 28, 2025, is set to take effect in 2026, according to reports by Business Turkmenistan.
Legalizing Crypto Under Close Supervision
The new regulations open a legal avenue for digital assets and cryptocurrency mining activities within Turkmenistan. However, the Central Bank of Turkmenistan maintains exclusive control over the entire crypto ecosystem in the country. The government mandates that all crypto exchanges and custodial services operate under licenses, with stringent procedures in place to recognize and prevent money laundering.
A key requirement includes the use of cold storage solutions for digital asset protection. Financial institutions within Turkmenistan are expressly prohibited from offering cryptocurrency services, and government authorities are empowered to halt, cancel, or demand refunds for token issuances if deemed necessary.
Registration and Regulation of Mining Activities
Crypto mining operations and mining pools must be officially registered with the authorities. Illegal mining activities are explicitly banned, with the government maintaining a firm stance against unlicensed operations. The law grants the Central Bank the power to certify the use of distributed ledger technologies or even develop its own infrastructure to support a supervised and licensed local crypto ecosystem.
Despite legalizing cryptocurrency trading and mining under regulation, the government clarified that digital assets will not be recognized as legal tender, official currency, or securities within Turkmenistan.
Categorization and Oversight of Digital Assets
Regulators have divided digital assets into two categories: ‘jaminant’ and ‘secured’ tokens. They hold the authority to impose liquidity standards, settlement protocols, and emergency procedures, including ransom handling for guaranteed tokens. This detailed approach aims to bolster stability and security within the digital asset market.
The law follows a government meeting held on November 21, 2025, where Deputy Chairman of the Ministerial Cabinet, Hojamyradov, outlined the technology basics and regulatory framework to introduce digital assets in the country. Additionally, the government proposed establishing a special State Commission to oversee the crypto sector.
From Comprehensive Ban to Regulated Acceptance
Previously, Turkmenistan imposed a comprehensive ban on cryptocurrency trading, mining, and use. Illegal miners were routinely targeted through raids and device confiscations. Despite these efforts, underground crypto activities continued via VPNs and peer-to-peer platforms.
The government’s cautious legalization reflects a desire to stabilize the national currency and reduce risks linked to speculation and unlawful transactions, while preserving strict internet regulations and high levels of digital surveillance.
Context and Regional Crypto Trends
Turkmenistan, with a population of approximately 7.6 million, depends heavily on natural gas exports and features a highly centralized political system with strict media and internet controls, including bans on platforms such as X (formerly Twitter) and Telegram.
This regulatory shift comes amid a global uptick in official oversight of digital assets. For instance:
- Vanuatu recently enacted the Virtual Asset Service Provider Act.
- Pakistan opened markets to international crypto exchanges through new authorities.
- Poland implemented rigorous crypto rules aligned with the EU’s Markets in Crypto-Assets (MiCA) framework.
- United Kingdom is expanding crypto licensing for large institutions while considering tax relief for decentralized finance.
- Sweden is reviewing Basel regulations concerning crypto exposures.
Turkmenistan’s Approach: Controlled Integration
By legalizing cryptocurrency use under strict state supervision, Turkmenistan aligns itself with a global trend toward regulated digital asset markets. However, it also reaffirms its characteristically stringent control over information and finance, ensuring that any crypto activity operates within tightly monitored and licensed frameworks.
This article is translated and summarized from the Indonesian original. For accuracy, readers are encouraged to refer to the Indonesian version. The coverage is supported by DigitalSiber.id.
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Turkmenistan, cryptocurrency, digital assets, crypto regulation, financial law, Central Bank of Turkmenistan, crypto mining, digital economy