Turkmenistan has passed a new law, legalising cryptocurrency activity after years of stringent controls. For years, Turkmenistan enforced a broad ban on cryptocurrency use, trading and mining. Severe internet restrictions and tight surveillance kept most citizens cut off from global markets. The policy aimed to protect the national currency, the manat, and limit exposure to speculative assets and illicit financial flows. But the shift does not erase the country’s broader governance model. Turkmenistan remains heavily centralised and maintains strict media and internet controls, although the introduction of a regulated crypto framework shows a recognition that digital-asset markets are becoming too significant to ignore, even for highly controlled economies. A controlled opening The new law, signed by President Serdar Berdimuhamedov on November 28, will come into force in 2026 and create a regulated environment for digital-asset businesses. The framework introduces licensing for exchanges and custodial services, along with strict know-your-client and anti-money-laundering requirements. Firms operating in the sector will be required to rely on cold-storage solutions to protect customer assets. Although the legislation opens the door to crypto activity, it keeps authority in the hands of the state. Credit institutions are barred from offering crypto services, and the government reserves the power to suspend token issuances, void them, or mandate refunds when necessary. These measures underline the country’s determination to supervise every stage of digital-asset activity. The law also places clear limits on how the assets are treated. Cryptocurrencies will not be recognised as legal tender, currency or securities. Instead, they will be classified as backed or unbacked tokens, with regulators responsible for defining liquidity rules, settlement conditions and emergency redemption procedures for backed assets. Crypto mining returns, but under watch Turkmenistan’s approach to crypto mining follows the same controlled model. Companies and individuals will be allowed to mine digital assets, but only if they register their operations. Covert crypto mining is explicitly prohibited, reflecting years of enforcement actions in which authorities raided illegal sites and seized equipment operating through VPNs and underground networks. The central bank will have a central role in the technical backbone of the system. It is authorised to approve distributed ledgers or run its own infrastructure, ensuring that any blockchain activity takes place on networks the state can supervise. These steps follow a government meeting on November 21, during which officials outlined the legal and technical foundations needed for digital assets. A proposal to form a new State Commission dedicated to the sector was also submitted, signalling the government’s intention to manage the rollout closely. Notably, Turkmenistan’s move comes as other countries strengthen oversight of digital assets. Vanuatu has introduced licensing rules for crypto service providers, while Pakistan has opened its market to international exchanges through a new regulatory authority. Central banks and financial watchdogs across Europe have also signalled new approaches to the sector, reflecting a broader acknowledgement that tokenised finance is entering the mainstream. The post Turkmenistan legalises crypto, lifts long-standing restrictions appeared first on Invezz
