Turkmenistan has officially legalized cryptocurrency mining and trading, marking a significant shift in policy for one of the world’s most isolated nations. This new law, signed by President Serdar Berdimuhamedov, introduces a licensing framework for cryptocurrency exchanges that will be supervised by the country’s central bank. Despite this progress, strict regulations remain in place, as digital assets will not be recognized as a means of payment, currency, or security.
The move towards legalizing cryptocurrency comes amidst Turkmenistan’s ongoing reliance on its natural gas sector to support its economy. The country is currently developing a pipeline project intended to supply gas to Afghanistan, Pakistan, and India. This initiative indicates a gradual shift toward embracing digital systems in both public administration and economic policy.
Limited Internet Access and Its Implications
Internet access in Turkmenistan is tightly controlled by the state, which may hinder the practical use of cryptocurrencies within the country. The government has historically imposed strict regulations on internet usage, limiting citizens’ access to global platforms and information.
In April 2025, authorities took a step towards modernizing their approach to foreign visitors by approving a law that allows for electronic visas. This change aims to facilitate entry for foreigners, a notable shift from Turkmenistan’s past reputation for denying many visa requests without clear explanations.
Since gaining independence from the Soviet Union in 1991, Turkmenistan has maintained stringent border controls and a highly centralized political system. Under former President Saparmurat Niyazov, who led until his death in 2006, the nation declared itself a neutral state and limited foreign influence, resulting in an economy heavily dependent on gas exports. Today, China remains Turkmenistan’s primary buyer of natural gas.
A New Era for Digital Assets
Under President Serdar Berdimuhamedov, who took office in 2022, there have been indications of a limited opening towards economic reforms. This recent legislation on cryptocurrency is seen as part of broader initiatives aimed at attracting foreign investment and enhancing the country’s economic landscape.
In the wider context of Central Asia, other nations are also making strides in the digital asset space. For instance, Kyrgyzstan is strengthening its cryptocurrency and blockchain initiatives. In April 2025, President Sadyr Zhaparov announced a partnership with Changpeng Zhao, the founder of Binance. This agreement focuses on regulatory consulting, infrastructure development, and educational programs aimed at creating a robust blockchain ecosystem.
As Turkmenistan embarks on this new path, the implications for its economy and digital landscape remain to be seen. The legalization of cryptocurrency mining and trading could potentially attract foreign investment, but the tightly controlled environment may limit its effectiveness. Observers will be watching closely to see how this policy transformation unfolds in a country known for its cautious approach to economic change.