Turkmenistan Throws Open Crypto Gates: Mining and Exchanges Legal from 2026

Central Asia's energy-rich hermit state just flipped the switch.

Turkmenistan—long a black hole on the crypto map—has greenlit a full-scale legal framework for digital asset mining and trading platforms. The move, effective this year, transforms one of the world's most closed economies into a potential powerhouse for blockchain infrastructure.

From Prohibition to Power Grid

The legislation doesn't just tolerate crypto; it institutionalizes it. Licensed mining operations can now tap into the nation's vast, subsidized natural gas reserves. For exchanges, it means a regulated on-ramp for a population with limited access to global finance. It's a classic resource play: monetize what's in the ground to build what's in the cloud.

The Geopolitical Hash Rate

This isn't happening in a vacuum. Neighbors like Kazakhstan have already ridden the mining boom and bust. Turkmenistan's play looks different—more controlled, state-integrated, and strategically timed. They're not chasing fugitive miners; they're issuing them permits. It's industrialization, not improvisation.

The real test? Whether the bureaucracy can move faster than the market's next pivot. And if the state's cut of the profits ends up feeling more like a tax farm than a innovation fund—well, Wall Street would call that a proven business model.

One thing's clear: a new, state-sponsored hashrate is coming online. The only thing warmer than their gas flares will be the server racks.

Turkmenistan, a small country with about 7.6 million people and very limited control over the internet, has officially legalized cryptocurrency mining and exchanges since January 2026.

The decision is aimed at attracting fresh investment and reducing dependence on gas exports, while keeping tight rules on who can operate and how crypto can be used.

Turkmenistan Passes New Crypto Law For Mining & Exchanges

On November 28, 2025, President Serdar Berdimuhamedov signed the Law on VIRTUAL Assets, which officially came into force on January 1, 2026.

Under this law, only registered companies and approved entrepreneurs are allowed to mine cryptocurrencies or operate crypto exchanges. This is not an open market. Every business must obtain a license before starting, and all activities will be closely monitored by the government.

Several state bodies, including the Central Bank, the Cabinet of Ministers, and the Ministry of Finance and Economy, will oversee the sector. Regular checks will be carried out to make sure companies follow the rules.

JUST IN:Turkmenistan officially legalizes Bitcoin and crypto mining and exchanges – The Washington Post pic.twitter.com/6ateFUKX7s

Mining and Exchanges Under Tight Control

Crypto mining is now legal only for approved operators. Any hidden or unlicensed mining remains illegal and could lead to penalties. This rule is especially strict given the country’s controlled digital environment.

Exchanges must also operate under strict rules. They can offer crypto trading services, but only within the framework set by regulators. Taxes must be paid, and crypto cannot be used for illegal activities.

What Is Allowed, And What Is Not

The new law clearly states that cryptocurrencies will not be treated as legal tender. This means crypto cannot be used for everyday payments, salaries, or official transactions. 

Instead, digital assets are classified as digital property that people can legally own, hold, and trade under regulated conditions.

Licensed crypto firms must follow strong anti-money laundering rules, store most assets in cold wallets, and report activity to regulators. Any unlicensed mining or exchange activity is strictly banned. Authorities also have the power to suspend or cancel licenses if rules are broken.

How This Affects Crypto Use in Turkmenistan

While nearby countries like Uzbekistan and Kazakhstan already have clear crypto rules, Turkmenistan is taking a different path. Instead of banning crypto, it is choosing a tightly controlled and regulated approach.

Even though crypto trading and holding are still very limited today, this new law slowly opens the door for adoption under strict government rules.