Turkmenistan Moves to Regulate Cryptocurrency
- New Law on Digital Assets
Turkmenistan has introduced legislation to legalize and regulate cryptocurrency mining and exchanges. President Serdar Berdymukhamedov signed the law, which will take effect on January 1. The regulation establishes licensing requirements for companies operating in the digital asset sector. It also defines the legal and economic status of virtual assets within the country.
Economic Diversification Efforts
The Central Asian nation, known for holding the world’s fourth largest gas reserves, has been seeking to broaden its economy. Most of its natural gas exports currently go to China, leaving the country heavily dependent on energy revenues. Officials believe the new law will attract investment and encourage digitalization across industries. By supporting cryptocurrency activity, Turkmenistan aims to reduce reliance on traditional energy exports.
Regional Context and Comparisons
The legislation covers the creation, storage, placement, use, and circulation of digital assets. Neighboring Kyrgyzstan has already positioned itself as a regional leader by launching a national stablecoin with Binance. Turkmenistan’s move reflects a growing interest in blockchain technology among former Soviet republics. These developments highlight how Central Asia is becoming a testing ground for digital finance initiatives.
Turkmenistan’s cautious approach contrasts with Kyrgyzstan’s more aggressive adoption of cryptocurrency tools. While Kyrgyzstan has embraced a state-backed stablecoin, Turkmenistan is focusing first on establishing a regulatory framework. This step could pave the way for future projects such as government-supported digital currencies or partnerships with international exchanges. The law marks the country’s first significant attempt to integrate blockchain into its broader economic strategy.
