The bill signed by President Serdar Berdymuhamedov establishes a licensing system overseen by the country’s central bank.
Published January 2, 2026
Turkmenistan, one of the world’s most isolated countries, has officially legalized the mining and exchange of cryptocurrencies, in a move that will bring about major changes to the country’s tightly controlled and gas-dependent economy.
President Serdar Berdimuhamedov on Thursday signed a bill regulating virtual assets under civil law and establishing a licensing system for virtual currency exchanges supervised by the country’s central bank.
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However, digital currencies are still not recognized as a means of payment, currency, or security.
Turkmenistan, a former Soviet republic in Central Asia, relies heavily on exports of its vast natural gas reserves to support its economy.
China is the country’s main gas importer, and Turkmenistan is currently working on building a pipeline to supply gas to Afghanistan, Pakistan and India.
Turkmenistan is taking steps towards digitalizing government functions and the economy.
In April, the country adopted a law introducing electronic visas aimed at simplifying the entry of foreigners into the country.
After gaining independence in 1991, the tightly-governed country typically imposes strict entry requirements on prospective visitors, with many visa applications rejected for unclear reasons.
Turkmenistan, a largely desert country with a population of 7 million and the world’s fourth-largest natural gas reserves, officially declared neutrality in 1995 under its first president, Saparmurat Niyazov, who excluded both Western and Russian influence.
Until his death in 2006, Mr. Niyazov maintained tight control over politics, isolation from the outside world, and an economy heavily dependent on natural gas exports.
Since succeeding his father as president in 2022, Berdimuhamedov has hinted at some possibility.
In December, he hinted at the possibility of political reform ahead of talks with Russian President Vladimir Putin, Turkish President Recep Tayyip Erdoğan, and Iran’s Massoud Pezeshkian.
“We are carrying out extensive efforts aimed at transforming neutral countries into strong, democratic, rule-of-law states where their people live happy lives,” Berdimuhamedov said in the article, without elaborating.
The internet in Turkmenistan remains heavily regulated and controlled by the government, but social media regulations have been eased and the government has promised to open new air transport links and liberalize the visa system.
Still, the country is ranked as one of the worst countries in the world for independent media by the Committee to Protect Journalists.
Kyrgyzstan, another former Soviet Central Asian republic, has also partnered with crypto exchange Binance to launch a national stablecoin, establishing itself as a regional leader in the field.
