President of Turkmenistan Serdar Berdymukhamedov has signed the Law on Virtual Assets, legalizing cryptocurrency mining and the operation of crypto exchanges in the country. The law will take effect on January 1, 2026, Neutral Turkmenistan reported.
The new legislation regulates the creation, issuance, storage, use, and circulation of virtual assets. Cryptocurrencies in Turkmenistan may serve as objects of civil rights but are not recognized as legal tender, currency, or securities. Virtual assets may be either backed or unbacked.
Mining will be permitted for individual entrepreneurs and legal entities, all of whom must undergo state registration with the Central Bank of Turkmenistan in electronic form. The law explicitly bans hidden mining—using someone else’s computing power without their knowledge.
The operation of crypto exchanges and exchange platforms—classified as virtual asset service providers—will require licensing from the Central Bank. Users will be able to open crypto wallets on such platforms only after full identity verification, in line with anti–money laundering laws.
Crypto exchanges will be allowed to provide services such as exchange, purchase and sale, storage, transfer, management of virtual assets, and primary placements. Both Turkmenistani residents and foreign citizens may establish such exchanges, with certain exceptions: individuals and companies registered in offshore jurisdictions, or those holding accounts in offshore banks, are prohibited from becoming founders or shareholders of virtual asset service providers.
The state bears no responsibility for the obligations of crypto platforms or for potential losses related to virtual asset depreciation.
The law also sets detailed rules for cryptocurrency advertising, requiring warnings about risks, clarifications that virtual assets are not state-backed, and explicit statements that they are not official means of payment. Advertising may not include promises of profitability, references to luxury items, bonuses or discounts, imagery of minors, or portray cryptocurrency as an easy path to wealth.
Additionally, the law prohibits individuals and entities involved in crypto-related activities from using words such as “state,” “Turkmenistan,” “Turkmen,” “Turkmen national,” and related terms in their branding. Those not engaged in crypto activities are barred from using terms like “virtual asset,” “cryptocurrency,” or “digital asset” in names or advertising.
