Turkmenistan Legalizes Crypto Mining but Bans Use for Payments

As of January 1, 2026, cryptocurrency mining and trading will become fully legal in Turkmenistan. Earlier this week, local newspaper reported that the country’s President, Serdar Berdimuhamedow, signed a new legislation that sets up the framework for issuing, storing, and trading digital assets.

Under the new law, citizens of Turkmenistan will be able to mine, trade, and store cryptocurrencies, but they won’t be able to use them as a means of payment.

In order to mine the tokens, users will first need to register with the country’s Central Bank. Shadow mining, which refers to using someone else’s infrastructure to mine, without their explicit knowledge and consent, is strictly forbidden.

Similar rules apply for cryptocurrency exchanges, which will need to be registered with the country’s central monetary institution. They will also need to adhere to strict Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, and anonymous wallets most likely won’t be allowed.

Advertising will be tightly controlled, too. For example, tokens are not allowed to carry national symbols or have the name “Turkmenistan” as part of their name, image, or branding. The same goes for the word ‘state’ and similar phrases that could be tied back to the country.

The exchanges and other businesses will also need to add disclaimers to the promotional material, to include warnings that the entire loss of funds is possible. Finally, ads are not allowed to portray “easy gains”, luxury, or minors.

It is also worth mentioning that prior to the introduction of this law, crypto mining and trading weren’t illegal or banned, in the full sense of the word. There simply wasn’t a legal framework, meaning the entire industry operated in the grey zone.

With the new legislation, Turkmenistan is joining its Central-Asian neighbors, Uzbekistan and Kazakhstan, who have already set up their legislation in 2022 and 2023.

In both these countries, cryptocurrency mining and trading are regulated, albeit for licensed entities that follow regulatory requirements. The tokens are not recognized as legal tender and can’t be used for payments. Some media are interpreting this move as a “regional push” that suggests a growing interest in digital assets.