Turkmenistan has officially put into effect the Virtual Assets Law legalizing cryptocurrency mining and cryptocurrency exchanges, aiming to boost economic development and attract foreign investment.
The new rules, which President Serdar Berdimuhamedov signed into law on November 28, provide a framework for the use, creation and exchange of virtual assets in the country.
A 2025 study of Organization of Islamic Cooperation (OIC) member states, including Turkmenistan, concluded that allowing crypto is good for the economy.
“The legalization of cryptocurrencies has significantly boosted economic growth in developing countries by improving financial inclusion and providing the legal clarity essential to attract digital foreign direct investment,” said Muhammad Rheza Ramadhan, an economist and researcher at the Indonesian Ministry of Finance.
The law defines virtual assets as property, not legal tender or securities, and divides them into two categories: collateralized (backed by an underlying asset) and unsecured (like bitcoin). Virtual assets cannot be used to pay for goods or services and must be treated strictly as property or investment instruments.
Cryptocurrency mining by companies and individuals becomes permitted, provided that miners register with the Central Bank of Turkmenistan. The law imposes technical standards on mining operations and explicitly prohibits covert mining methods like cryptojacking.
The law also allows crypto exchanges and custody services to operate, again provided a license is issued by the central bank. Both domestic and foreign entities can own these services, except those based in or associated with offshore jurisdictions. Exchanges must enforce know-your-customer and anti-money laundering rules, and anonymous transactions or wallets are not permitted.
