The Central Asian country Turkmenistan has legalized cryptocurrency mining and trading and regulates the activities of entities engaged in these industries.
Starting in January, mining companies will have to follow strict registration rules and crypto exchanges will need a license to offer their services.
Turkmenistan regulates minting and trading of digital coins
Turkmenistan’s President Serdar Berdymuhamedov signed the “Virtual Assets Law” legalizing cryptocurrency mining and the operation of digital currency trading platforms.
This comprehensive framework regulates a wide range of virtual currency-related activities, including the issuance, storage, and distribution of virtual currencies in the country.
These are not recognized as means of payment in the former Soviet Republic, but are subject to the country’s civil law.
Turkmen Portal reported on Friday that the virtual currency law will come into force on January 1, 2026, citing an announcement in the official Gazette Neytraliny Turkmenistan.
Cryptocurrency miners must register with the state
According to the new law, both individual entrepreneurs and legal entities will be allowed to mine cryptocurrencies in Turkmenistan.
All persons involved in this business will be required to register with the Central Bank of Turkmenistan (CBT) by filling out an electronic form.
Once the submitted information is approved, the applicant will be issued with a permanent certificate that allows them to legally carry out their activities.
Mining equipment will also be required to be registered. Miners must also provide a valid cryptocurrency wallet and comply with technical requirements and fire safety standards.
The framework largely mirrors that of Russia, which legalized and regulated its mining sector last year, but still faces a low rate of miner registration with the Federal Tax Service (FNS).
Any type of covert cryptocurrency mining that relies on the unauthorized use of the computing power of someone else’s hardware is strictly prohibited.
Law introduces licenses for cryptocurrency exchanges
Cryptocurrency exchanges and other virtual asset service providers in Turkmenistan operate under a licensing regime. Licenses are issued by national monetary authorities.
These platforms can open cryptocurrency wallets for their customers only after thorough identity verification, following customer verification procedures envisaged by existing anti-money laundering laws.
The newly adopted Virtual Assets Law strictly prohibits the use of symbols of Turkmenistan by companies in the field of virtual currencies.
Miners, coin issuers, and cryptographic service providers are prohibited from using the words “Turkmenistan,” “Turkmen,” “Turkmen,” or the words “nation” or “nation” in their brand names or symbols in any form, language, or combination.
This law also regulates advertising in the cryptocurrency field. Advertisements must carry a warning about the risks involved, including detailed information about the potential loss of funds.
Depicting cryptocurrency trading as an easy way to get rich or using images of minors in advertising is also not allowed.
Marketing materials shall also clearly indicate that digital assets are not backed by states and states are not responsible for their devaluation.
Central Asia is becoming a crypto hotspot
The new law will allow Turkmenistan to catch up with its neighbors in the region, which are already leading in terms of crypto regulation, and are becoming Eurasia’s crypto hotspot.
In early November, Kazakh President Kassym-Jomart Tokayev signed a law regulating the circulation of decentralized digital currencies in the country’s economy and lifting certain restrictions on mining.
Also, as reported by Cryptopolitan, the Kyrgyzstan Central Bank this month allowed commercial banks to open escrow accounts for cryptocurrency transactions and launched a gold-backed stablecoin USDKG pegged to the US dollar.