One of the world’s most isolated nations, Turkmenistan, has partially legalized cryptocurrency with certain restrictions. President Serdar Berdimuhamedov signed the Turkmenistan crypto regulation law, and the Act came into effect on January 1, 2026. The country has partially opened the door for cryptocurrency and legalized Crypto mining. The Crypto exchanges and trading have been legalized in the ACT.
A Legal Framework That Allows Mining and Trading, but Not Monetary Use
Crypto mining has become legal in Turkmenistan after the government passed a new law regulating digital assets. Under this framework, both individuals and institutions are permitted to mine cryptocurrencies, provided they use equipment approved by the authorities. Only those with valid government registration and licenses are allowed to carry out mining activities.
Still, the new law strictly prohibits the use of cryptocurrencies for payments. Bitcoin and other digital assets cannot be used to purchase goods or services such as food, rent, or utilities. Cryptocurrencies are treated as regulated digital assets rather than legal tender.
Before this legislation, the Turkmenistan government exercised tight control over crypto-related activities. Authorities conducted periodic enforcement actions, including raids on unlicensed mining sites, seizure of mining equipment, and arrests linked to the use of VPNs or underground networks. Mining rigs that were previously confiscated became legal only after the law came into effect and upon receiving official approval.
Cryptocurrency mining and trading are now overseen by the Central Bank of Turkmenistan. Unregistered or unauthorized wallets are prohibited, and all mining rigs and related equipment must be officially registered with the government. The central bank also has the authority to approve or revoke cryptocurrency projects, with a preference for permissioned blockchain systems. While mining is now legal, the sector remains tightly controlled, with limited decentralization and privacy due to centralized oversight.
Revenue Generation Without Monetary Liberalization
The ACT was signed to diversify the state’s revenue apart from the natural gas reserves and exports. Right now, the government has turned its attention toward cryptocurrency mining as the natural gas exports are slightly slowing down. They have a huge natural gas reserve and can get the electricity cheaply, so they expect Crypto mining to bring them income through taxes, Fees and Foreign Currency inflow. But they stay strong in their national currency (The Manat) to avoid losing control and capital flows due to the Crypto. So they allow mining only if the state can watch and control everything.
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