Turkmenistan has passed a new law allowing cryptocurrency activity after years of strict bans. Until now, trading, mining, and using crypto were prohibited. Severe internet restrictions and tight surveillance kept most citizens out of global markets. The goal was to protect the national currency, the manat, and prevent exposure to speculative or illicit financial activity.
The new law, signed on November 28, will take effect in 2026. It creates a regulated framework for exchanges, custodial services, and crypto businesses. Firms must follow strict KYC and anti-money-laundering rules and use cold storage to protect customer assets.
While crypto activity is allowed, the state retains full control. Banks cannot offer crypto services. The government can suspend token issuances, cancel them, or require refunds if needed. Cryptocurrencies will not be considered legal tender, currency, or securities. Instead, they are classified as backed or unbacked tokens, with regulators defining liquidity, settlement, and redemption rules.
Crypto mining is returning but under tight supervision. Companies and individuals can mine only if registered, and covert operations remain illegal. The central bank will oversee blockchain infrastructure, approving or running distributed ledgers itself.
Turkmenistan’s move aligns with global trends. Countries like Vanuatu and Pakistan are also introducing regulated frameworks, while European regulators strengthen oversight. The law signals Turkmenistan’s recognition that digital assets are becoming too important to ignore, even under a highly centralised governance model.
