Turkmenistan will legalise crypto trading and mining under strict state control in 2025, enforcing licensing, KYC, AML, and supervision.
Turkmenistan plans to legalise crypto trading and mining starting from next year. President Serdar Berdimuhamedov approved a law that defines how the industry will operate under tight state supervision.
The law sets rules for exchanges, custodial services, and crypto miners. It requires licenses, know-your-client checks, anti-money laundering compliance and secure storage of digital assets.
This means that Banks cannot provide crypto services. However, the state can also cancel token issuances or force refunds when necessary.
Licensing and mining rules under Turkmenistan’s law
The new law requires registration for crypto miners and mining pools. According to the Turkmenistani government, covert mining operations are banned.
Turkmenistan’s central bank can also authorise distributed ledgers or run its own, which would potentially require citizens to use state-controlled infrastructure.
🚨BREAKING: 🇹🇲Turkmenistan just made crypto LEGAL.
The new LAW, effective Jan 1, will require licensing and set legal standards for crypto in the country. pic.twitter.com/qXhc4r15Go
— Coin Bureau (@coinbureau) November 28, 2025
Cryptocurrencies will also not be legal tender or securities. The law separates digital assets into backed and unbacked categories, and regulators will define how backed assets can be redeemed, traded or even settled in emergencies.
Officials noted that predictable, licensed frameworks are important for the digital market to grow safely. This said, companies that violate regulations could face shutdowns or other legal consequences.
Government commissions and regulatory foundations
Turkmenistan held a government meeting on November 21 to plan the introduction of digital assets. Deputy Chairman Hojamyrat Geldimyradov presented a report outlining the structure for crypto operations.
The report suggested creating a special State Commission to oversee the industry. This commission will also ensure compliance with all licensing, storage, and reporting requirements. In all, officials see the commission as a tool to maintain transparency while keeping state control.
Economic reasons behind Turkmenistan’s crypto push
Turkmenistan relies heavily on natural gas exports, mainly to China. The country has the world’s fourth-largest gas reserves and leaders now want to diversify the economy to reduce reliance on fossil fuels.
Digital assets are part of the plan to stimulate investment and promote modernisation. By creating a tightly regulated crypto market, Turkmenistan hopes to attract both domestic and foreign investors while preventing illegal operations.
Comparison with global crypto trends
Turkmenistan follows a trend of state-regulated crypto markets. The UK recently proposed a tax framework to defer capital gains taxes on DeFi operations. The Bank of England also plans to regulate stablecoins alongside the US.
Other regulators like Sweden’s central bank have noted that existing crypto risk rules may need revision. Meanwhile, Turkmenistan’s law aligns with international efforts to supervise crypto while protecting investors and the financial system.
Notably, neighbouring Kyrgyzstan has already positioned itself as a regional crypto leader. It recently launched a national stablecoin in partnership with Binance, demonstrating that Central Asia is exploring digital assets actively.
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Strict oversight and control measures
The law allows Turkmenistan to monitor all crypto operations and exchanges must perform KYC checks on users, follow anti-money laundering rules and maintain secure cold storage for assets.
Mining operations must also be registered and transparent.
This being said, central bank approval is required for any distributed ledger system. This means that citizens could be required to use state-approved platforms for transactions. The government can also void token sales or demand refunds if projects fail to comply.