Turkmenistan begins 2025 with new legislation allowing cryptocurrency trading, aiming to capitalize on surplus energy from natural gas exports.
Turkmenistan has officially opened its doors to the cryptocurrency industry as legislation legalizing cryptocurrency exchanges and Miners came into effect on January 1st. This move marks a significant turning point in the economic diversification strategy of a Capital known for its high degree of isolation.
The law, signed into law by President Serdar Berdimuhamedow in late November 2024, reflects Turkmenistan's ambition to reduce its dependence on natural gas exports. Following a similar path to its neighbor Kazakhstan, which has become a major Bitcoin mining hub since 2021, Turkmenistan hopes to harness its surplus energy for cryptocurrency mining operations.
A comprehensive legal framework for the cryptocurrency industry.
The new law establishes a detailed legal framework for the entire cryptocurrency ecosystem. Notably, individuals not residing in Turkmenistan are also permitted to participate in cryptocurrency mining activities after completing the registration process, while cryptocurrency mining groups also receive operating permits.
For exchanges, regulations require mandatory operating licenses and compliance with international standards. Exchanges based in Turkmenistan must establish Know Your Customer (KYC) procedures, implement anti-money laundering (AML) measures, and meet cold storage requirements. However, the law also clarifies that crypto assets are not recognized as legal tender, currency, or securities.
Turkmenistan's move reflects the growing adoption of cryptocurrencies in Central Asia. Pakistan, one of its closest allies, has made significant strides in 2025 with the establishment of the Pakistan Virtual Asset Management Authority, licensing Binance and HTX, building a Bitcoin reserve fund, and appointing former Binance CEO Changpeng Zhao as a strategic advisor.
However, the pace of implementation in Turkmenistan may be slower due to the government's continued tight control over internet access, strict monitoring of financial transactions, and restrictions on foreign Capital . Whether the country can balance strict regulation with encouragement of innovation will be a key factor in the success of the new policy.
