Turkmenistan Legalizes Crypto Mining and Exchanges to Boost the Economy
Turkmenistan has enacted the Law on Virtual Assets, legalizing cryptocurrency mining and exchanges to foster economic development and attract foreign investment. The legislation defines virtual assets as property, categorizing them as secured or unsecured assets, and clarifies that they are neither legal tender nor securities.
Cryptocurrency mining and exchange operations must register with the Central Bank of Turkmenistan. Crypto exchanges and custodial services are required to obtain a license from the central bank to operate legally. Operating without such licensing is strictly prohibited.
Mining activities must comply with established technical standards, and covert mining practices, such as cryptojacking, are banned. Exchanges and custodial services can provide their services to both domestic and foreign entities, except those connected to offshore jurisdictions. These entities must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. The use of anonymous wallets and transactions is not allowed.
The law also states that virtual assets cannot be used as payment for goods or services, reinforcing their status as property or investment instruments. Overall, the legislation provides a regulatory framework for the use, creation, and exchange of virtual assets in Turkmenistan.
