Turkmenistan Legalizes Cryptocurrency Operations in Limited Economic Reform

Turkmenistan has enacted a landmark crypto law, marking a rare economic liberalization move in one of the world's most closed economies. The legislation establishes a regulatory framework for VIRTUAL assets while maintaining strict state control—a characteristic balancing act for the Central Asian nation.

Cryptocurrency exchanges now face mandatory central bank registration and supervision, with stringent KYC/AML requirements replacing anonymous transactions. Mining operations gain legal status, but only for properly registered entities adhering to new technical standards. The law carefully avoids recognizing crypto as legal tender, instead classifying digital assets as property under civil law.

This calibrated approach reflects Ashgabat's strategy to attract blockchain investment without loosening its tight internet restrictions. Analysts note the reforms could create new compliance-driven opportunities for institutional crypto services, though the prohibition on payment usage limits immediate commercial applications.