Turkmenistan legalizes cryptocurrency mining in rare economic change

Turkmenistan legalized cryptocurrency mining and exchanges on January 1, 2026, marking one of the most significant political changes the tightly controlled Central Asian country has taken in decades.

President Serdar Berdimuhamedou signed the law. This puts virtual assets under civil law and introduces a licensing system overseen by the central bank.

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Even closed economies cannot ignore cryptocurrencies

Open this I pass A narrow but notable door to cryptocurrency activity in a country long known for isolation, tight capital controls and close government oversight.

However, still The feasibility of the mining operation Questionable in a country where the government strictly regulates Internet access.

Turkmenistan legalizes crypto under the new Virtual Assets law

Turkmenistan has passed a new Law on Virtual Assets, effective from January 1, 2026, legalizing cryptocurrency mining and trading for the first time. The law was signed by President Serdar Berdimuhamedov on November 28, 2025, … pic.twitter.com/NNrZKi3e9T

– Crypto Miners (@CryptoMiners_Co) January 1, 2026

Historically, Turkmenistan has been among the most closed countries in the world. The government maintains strict restrictions on media, travel and foreign investment. The new law fits a model of cautious state-led reforms rather than liberalization.

Last year, the government introduced e-visa to facilitate the entry of foreigners. Now, cryptocurrency mining seems to be positioned as another tightly managed tool to attract capital and technical expertise without diluting political control.

Officials framed the legislation as an economic modernization effort rather than a financial revolution. It includes licensing requirements, central bank supervision and payment restrictions The state maintains full control of the sector.

“Putin doesn’t name buildings after himself,” he said @FranklinFoer.

“The only leaders in the world who do this are in places like Turkmenistan and Tajikistan. There is a tin-pot dictator quality to what (Trump) is doing and how he is afflicting his insecurities in the world.” pic.twitter.com/s4kfBJqcOB

– Washington Week with The Atlantic | PBS (@washingtonweek) December 20, 2025

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Energy, geopolitics and Russia’s shadow

Turkmenistan’s economy relies heavily on natural gas exports, with China is its main buyer. Cryptocurrency mining offers a potential way to monetize excess energy. Also diversify sources of income beyond hydrocarbons.

At the same time, the decision came in a moment that squeezed Russia has regulations The interior remains one of the largest mining centers in the world.

Moscow has pushed mining into official and fiscal channels and limited operations in electrically stressed areas.

Turkmenistan is not an official ally of RussiaMaintain a policy of permanent neutrality.

However, the law is in line with a broader Eurasian trend To expand mining capacity outside the United Stateswhich remains the dominant destination for large industrial miners.

Despite the title change, the limitations are clear. Cryptocurrencies cannot be used for payment, exchanges will operate under a strict license, and strictly controlled internet controls will remain unchanged.

As a result, Turkmenistan’s mining sector is likely to develop slowly and selectively.