Turkmenistan officially legalizes virtual assets from January 1, 2026, establishing a regulatory framework for licensing exchanges and mining to reduce dependence on natural gas exports.
Turkmenistan, the Central Asian nation with the world’s fourth-largest natural gas reserves, is making a significant shift. On November 28, President Serdar Berdymukhamedov signed into law a law regulating virtual assets, marking a significant policy shift in a once-closed, centrally controlled economy.
The move is part of a broader strategy to diversify the country’s revenue sources. A government spokesman confirmed to Reuters that the law will “help attract investment and promote digitalization,” establishing a legal framework for the creation, storage and circulation of virtual assets within the country.
Strict legal framework with international standards
The law requires exchanges and mining companies to register and obtain operating licenses. In particular, the law applies strict anti-money laundering standards, including customer identity verification and prohibits the use of anonymous wallets. However, digital assets are not recognized as legal tender or a means of payment in domestic transactions.
Previously, virtual assets existed in a legal gray area in Turkmenistan due to the cautious policies of the authorities. The current legalization decision represents a shift in thinking, placing the country in the general trend of the Central Asian region in formalizing the digital asset sector.
Neighboring countries have taken similar steps. Kyrgyzstan is leading the region with the launch of a national stablecoin and a central bank digital currency in collaboration with Binance by the end of 2025. Uzbekistan and Kazakhstan have also established licensing regimes for mining and trading.
When the law takes effect in early 2026, global financial markets will be watching to see whether Turkmenistan can balance attracting foreign Capital while maintaining tight control over its financial system – a key test for a country seeking a path to sustainable economic modernization.
