by Coinstrooper Crypto Articles
Quick Take
  • Credit institutions are barred from offering crypto services, and the state reserves the authority to halt, void, or mandate refunds of token issuances.
  • Cryptocurrency mining and mining pool operations must also be registered, and covert activities are explicitly prohibited.
  • Despite these regulatory openings, the law maintains that cryptocurrencies will not be recognized as legal tender, currency, or securities.
  • A proposal to establish a special State Commission dedicated to the sector was also submitted.

What Happened

The move follows a November 21 government meeting in which Deputy Chairman of the Cabinet of Ministers Hojamyrat Geldimyradov outlined the technological, legal, and organizational foundations for introducing digital assets.

The measures are intended to preserve control over the national currency, the Turkmenistani manat, and reduce risks from speculative investment and illicit transactions.

The country’s adoption of regulated cryptocurrency comes amid a global wave of legislative activity. In 2025 alone, several nations introduced or expanded frameworks to oversee digital assets.

Market Context

It categorizes digital assets into “backed” and “unbacked,” with regulators tasked with defining liquidity conditions, settlement protocols, and emergency redemption for backed tokens.

Turkmenistan has long enforced a strict ban on cryptocurrency activity, prohibiting trading, mining, and the use of digital assets.

Severe internet restrictions and government surveillance further isolated citizens from global crypto markets.

Ashgabat, the capital, is known for its white marble architecture and the world’s largest indoor Ferris wheel.

Countries Worldwide Step Up Digital Asset Oversight Amid Growing Markets

Pakistan opened its market to international crypto exchanges under the newly formed Pakistan Virtual Assets Regulatory Authority, seeking to provide legal clarity and curb illicit finance.

The United Kingdom’s tax authority floated measures easing capital gains obligations for decentralized finance participants, while Bank of England officials showed alignment with U.S. stablecoin regulation.

Why It Matters

Turkmenistan has made a historic move by legalizing cryptocurrency under a tightly controlled framework, indicating a major policy shift for one of the world’s most closed economies.

According to a report from local outlet Business Turkmenistan, on November 28, President Serdar Berdimuhamedov signed legislation that will take effect in 2026, establishing a regulated environment for the cryptocurrency industry while maintaining strict state oversight.

Details

New Law Opens Door for Digital Assets and Mining, But Central Bank Maintains Tight Control

The law sets out licensing requirements for crypto exchanges and custodial services, mandates know-your-client and anti-money laundering protocols, and obliges firms to use cold storage solutions for digital assets.

Credit institutions are barred from offering crypto services, and the state reserves the authority to halt, void, or mandate refunds of token issuances. Cryptocurrency mining and mining pool operations must also be registered, and covert activities are explicitly prohibited.

The legislation empowers the central bank to authorize distributed ledgers or operate its own infrastructure, effectively steering participants toward permissioned and surveilled networks.

Despite these regulatory openings, the law maintains that cryptocurrencies will not be recognized as legal tender, currency, or securities.

A proposal to establish a special State Commission dedicated to the sector was also submitted.

Authorities routinely raided illegal mining operations and seized equipment, though underground activity persisted via VPNs and peer-to-peer platforms.

A landlocked former Soviet republic with around 7.6 million people in 2025, Turkmenistan relies heavily on natural gas exports.

Its politics are dominated by a centralized presidential system, widely considered authoritarian, and the country maintains strict media and internet controls, including bans on platforms like X and Telegram.

Earlier this year, Vanuatu enacted the Virtual Asset Service Provider Act, establishing licensing and oversight for crypto businesses.

In Europe, Poland has passed a strict crypto law aligned with the EU’s MiCA framework, while the UK Financial Conduct Authority has accelerated crypto application approvals for firms such as BlackRock and Standard Chartered.

Additionally, Sweden’s central bank governor, Erik Thedéen, acknowledged potential adjustments to Basel Committee rules governing crypto exposures.