Turkmenistan Legalizes Crypto Mining and Trading

President Serdar Berdimuhamedov signed a new law legalizing cryptocurrency mining and trading in Turkmenistan, marking a cautious step toward digital economic integration in the isolated Central Asian nation of about 7 million people. The legislation took effect this week, introducing a regulated framework for virtual assets amid the country's long-standing reliance on natural gas exports.

The law classifies virtual assets as civil property but explicitly excludes them from recognition as legal tender, currency, securities, or payment methods. It establishes a licensing system overseen by the Central Bank of Turkmenistan for cryptocurrency exchanges, custodians, and mining operations. Licensed entities must implement know-your-customer protocols, anti-money laundering measures, and secure cold storage requirements, with all activities subject to periodic state inspections by the Cabinet of Ministers and Ministry of Finance and Economy. Unlicensed operations are prohibited, and regulators can suspend or revoke approvals for violations. Both residents and non-residents may participate in mining once registered, including through mining pools, though trading is confined to...