• Turkmenistan’s new law legalizes and regulates cryptocurrency activities, coming into effect on January 1, 2026.
• The law provides clear guidelines for digital assets, including mining, blockchain, and virtual asset service providers.
• Turkmenistan joins Kyrgyzstan in strengthening the Central Asian crypto sector, focusing on economic diversification.

Turkmenistan is taking significant steps to regulate the digital asset industry. President Serdar Berdymukhamedov has signed a new law legalizing and regulating cryptocurrency activities. Set to go into effect on January 1, 2026, the legislation will bring clarity to the nation’s crypto market, aiming to attract investment and encourage digitalization.

Legal Framework for Crypto Activities

The recently enacted law that was made public in the Neutral Turkmenistan newspaper delineates the legal and economic framework of virtual assets. One of the aspects discussed is the establishment of key terms such as blockchain, mining, smart contracts, and non-fungible tokens (NFTs). The law is quite comprehensive as it encompasses all activities related to cryptocurrencies such as the creation, storage, use, and circulation of digital assets in the country.

Government officials in Turkmenistan believe that the introduction of the new law will be a major step in the diversification of the country’s economy which is largely reliant on natural gas exports. Regulations for cryptocurrency exchanges and mining operators are also clearly defined under the law. These kinds of activities will now be conditioned on getting licenses from the government in order to operate legally in the country.

Despite the law providing a platform for digital asset engagement, it still puts limitations on the activities. It specifically mentions that it does not apply to money market instruments like stocks, bank deposits, and currencies or electronic money. This suggests that Turkmenistan is concentrating on a particular class of assets which is mainly digital currencies and technologies based on blockchain. The legislation will also bring the operation of virtual asset service providers in Turkmenistan under the law. The providers will have to follow the prescribed rules which in turn will lead to a more transparent and orderly crypto setting in the nation.

Central Asia’s Growing Crypto Presence

It is not Turkmenistan alone that is making progress in the area of digital assets among Central Asian countries. Another nation in the region, Kyrgyzstan, has also set its foot in the crypto domain. In the month of September, legislation was passed by the parliament of Kyrgyzstan that would allow for the establishment of a state cryptocurrency reserve, and for creating a comprehensive regulatory framework for digital assets.

The Kyrgyzstan government and Binance have teamed up to roll a national stablecoin. This partnership accentuates the increasing interest in digital money throughout the area, where Turkmenistan and Kyrgyzstan are both trying to be recognized as the main players in the crypto market.

The new law which is to come into force in January 2026, Turkmenistan is ready to control its crypto sector, and the business and investors will have a clear framework. The action is a clear indication of the country’s strategy to diversify its economy and to modernize the financial system by adopting digital technologies.