Turkmenistan Legalizes Cryptocurrency Mining but Bans Its Use as Payment
Turkmenistan has enacted the Law on Virtual Assets, which legalizes cryptocurrency mining and trading, effective January 1, 2026. The law, signed by President Serdar Berdimuhamedov in late November, does not recognize cryptocurrencies as legal tender, currency, or securities, and they cannot be used to pay for goods or services within the country.
Under the new regulations, miners are required to register their equipment and operations with authorities. The central bank will license exchanges, custodial services, and mining activities, with exchanges mandated to implement Know-Your-Customer (KYC) and anti-money laundering (AML) measures. The use of anonymous wallets is prohibited, and advertising related to cryptocurrencies is tightly restricted.
Credit institutions in Turkmenistan are forbidden from offering crypto services. Regulators have the authority to halt operations or void token issuances if deemed necessary. Furthermore, the central bank is empowered to authorize specific distributed ledger systems, encouraging activity on permissioned networks.
Before this law, underground cryptocurrency activities existed in the country. It is estimated that by the end of 2026, about 500,000 crypto users—approximately 6.4% of Turkmenistan’s population—could transition into the legal framework.
Turkmenistan benefits from abundant natural gas and over 5.4 gigawatts of electricity generation capacity, with peak demand at around 4.3 gigawatts. However, the electrical grid suffers from outages and quality issues, necessitating investments to support large-scale mining operations.
