Turkmenistan has enacted a new Law on Virtual Assets that legalizes cryptocurrency mining and authorizes crypto exchanges, as the government seeks to stimulate economic growth and attract foreign investment.
The legislation, signed by President Serdar Berdimuhamedov on Nov. 28, sets out rules for the use, creation and exchange of virtual assets in the country. It establishes a legal basis for digital assets while restricting their use as money.
Under the law, virtual assets are classified as property rather than legal tender or securities. They are divided into two categories: secured assets backed by an underlying asset, and unsecured assets such as bitcoin. Virtual assets cannot be used to pay for goods or services and are limited to use as property or investment instruments.
The move aligns with findings from a 2025 study on member states of the Organization of Islamic Cooperation (OIC), which include Turkmenistan. The study concluded that permitting cryptocurrencies can support economic development.
“Cryptocurrency legalization has significantly boosted economic growth in developing nations by enhancing financial inclusion and providing the legal clarity essential for attracting digital foreign direct investment,” said Muhammad Rheza Ramadhan, an economist and researcher at Indonesia’s Ministry of Finance.
The law allows both companies and individuals to mine cryptocurrencies, provided they register with the Central Bank of Turkmenistan. Mining operations must meet defined technical standards, and covert methods such as cryptojacking are explicitly banned.
Crypto exchanges and custodial service providers are also permitted to operate, subject to licensing by the central bank. Ownership is open to both domestic and foreign entities, except those based in or linked to offshore jurisdictions.
Licensed platforms must comply with know-your-customer (KYC) and anti-money-laundering (AML) rules. The law prohibits anonymous transactions and wallets, aiming to bring digital asset activity under formal regulatory oversight.