Turkmenistan legalizes crypto mining and trading as November legislation takes effect

In a significant move for the Central Asian nation, Turkmenistan has officially legalized cryptocurrency mining and trading, following a law that took effect on January 1, 2025. The new legal framework, signed by President Serdar Berdimuhamedov in November 2024, is designed to diversify the economy by encouraging digital asset operations, positioning the nation to take advantage of its energy resources for crypto mining. Known for its substantial natural gas reserves, Turkmenistan now offers licensed mining and exchange services, opening doors to both citizens and foreign entities. Crypto operations, including mining and trading platforms, must obtain licensing and register with Turkmen authorities, adhering to strict KYC and AML regulations. However, cryptocurrencies are regarded as digital property and are not recognized as legal tender or securities in Turkmenistan, prohibiting their use for payments. The move aligns with regional trends, as neighboring Kazakhstan has emerged as a significant mining hub and Uzbekistan has established a rigorous regulatory regime for cryptocurrency. Turkmenistan's legal revision reflects a shifting stance towards economic openness and could resonate throughout the region's approach to cryptocurrency and blockchain technology.