Turkmenistan Moves to Strengthen Economy by Legalizing Cryptocurrency Mining and Trading

In a significant policy shift, Turkmenistan has officially legalized cryptocurrency mining and trading, marking a rare reform in the country’s tightly controlled, gas-dependent economy. The decision, formalized through a newly signed law on virtual assets, signals Ashgabat’s intent to cautiously embrace emerging financial technologies while maintaining strong state oversight.

The legislation, approved and signed by President Serdar Berdimuhamedov, places cryptocurrencies under the scope of civil law for the first time. It also establishes a licensing system for cryptocurrency exchanges, which will operate under the direct supervision of Turkmenistan’s central bank. This framework aims to bring transparency, regulation, and state control to an area that previously operated in a legal gray zone.

However, the law makes it clear that digital currencies will not be recognized as legal tender. Cryptocurrencies cannot be used as money, a means of payment, or as securities within the country. Authorities have emphasized that while trading and mining are now permitted, the state will retain strict control over how virtual assets function within the broader financial system.

Despite the move toward legalization, Turkmenistan continues to maintain tight restrictions on internet access and digital activity. The government closely monitors online platforms, and these controls are expected to extend to cryptocurrency-related operations as well, ensuring that digital finance develops within carefully defined boundaries.

Turkmenistan’s economy remains heavily reliant on its vast natural gas reserves, a legacy of its Soviet-era infrastructure. The country is one of Central Asia’s most resource-rich nations, with energy exports forming the backbone of state revenue. china currently stands as Turkmenistan’s largest gas importer, accounting for a significant share of its export earnings.

At the same time, Turkmenistan is working to expand its energy export routes. The government is in the process of developing a major pipeline project intended to transport natural gas to Afghanistan, Pakistan, and India. Once completed, the project could reshape regional energy dynamics and further reduce the country’s dependence on a single export market.

The legalization of cryptocurrency activity appears to be part of a broader, albeit cautious, effort to modernize and open certain aspects of the economy. In April last year, Turkmenistan introduced an electronic visa system designed to simplify entry procedures for foreign visitors. This move marked a notable departure from decades of strict entry policies that followed the country’s independence in 1991.

For years, Turkmenistan was known for imposing severe restrictions on tourism, with many visa applications rejected without explanation. The introduction of e-visas suggested a gradual shift toward controlled engagement with the outside world, particularly in areas that could generate new revenue streams.

By legalizing cryptocurrency mining and trading, Turkmenistan is attempting to position itself at the intersection of technological innovation and state-led regulation. While the reforms stop short of full financial liberalization, they highlight the government’s recognition that diversification beyond natural gas is increasingly necessary for long-term economic stability.