Turkmenistan has taken a significant step in the cryptocurrency sector by officially legalizing both crypto trading and mining, with the new legislation set to come into effect on January 1, 2026. This move is encapsulated in the “Law on Virtual Assets,” designed to boost the nation”s economy through structured regulations.
Signed into law by President Serdar Berdimuhamedov in November 2025, the new regulations aim to create a comprehensive licensing framework under the supervision of the central bank. Turkmenistan”s decision to embrace cryptocurrencies positions it among an increasing number of nations adopting similar stances, which could foster bullish market sentiment heading into 2026.
The legislation not only opens the door for crypto trading but also legalizes mining operations. This is particularly advantageous given Turkmenistan”s significant energy surplus, predominantly generated from its natural gas exports to China. Global and local cryptocurrency miners will now have the opportunity to purchase excess electricity, which could be a game-changer in attracting mining operations to the region.
According to a report from the United Nations Economic Commission for Europe (UNECE), Turkmenistan exports approximately 30% of its annual electricity production. The legalization of mining is expected to stimulate economic growth in a country that has historically operated under stringent governance since gaining independence from Russia.
The new law also paves the way for crypto exchanges to operate legally, subject to licensing by the central bank. This development is poised to integrate Turkmenistan more deeply into the global cryptocurrency ecosystem. With a population of around 7 million, the government plans to ensure that only vetted exchanges receive licenses, contributing to a more stable global crypto market.
Furthermore, licensed exchanges will be required to report periodically to the Cabinet of Ministers and the Ministry of Finance and Economy, ensuring compliance with the established legal standards. This regulatory framework is seen as a bullish indicator for the crypto market, especially following a challenging 2025 for major cryptocurrencies like Bitcoin.
As Turkmenistan forges ahead with its crypto initiatives, it will need to clarify its stance on various aspects of cryptocurrency, such as whether it recognizes digital assets as a means of payment or legal tender. This clarity will be crucial as the nation seeks to remain competitive in the rapidly evolving global cryptocurrency landscape.
