Turkmenistan officially legalized cryptocurrency mining and trading in early 2025, establishing a basic regulatory framework for activities in this sector. The new rules allow participation by both local and foreign entities but require mandatory registration with designated government bodies. The law emphasizes that cryptocurrency is not recognized as legal tender or national currency, focusing regulation on mining and exchange operations.
What Has Changed in Turkmenistan's Legislation?
Legalization of Mining and Trading
The legal update officially permits mining and trading of digital assets within the country. This means mining is no longer automatically outside the legal framework and is now regulated by a set of rules aimed at accounting and controlling such operations.
Mandatory Registration for Miners
Under the new requirements, all individuals and entities wishing to engage in mining must complete a registration procedure with authorized bodies. This applies to both individuals and organizations, including foreign participants, and serves as a basis for monitoring activities.
Licensing of Cryptocurrency Exchanges
Exchanges operating under Turkmenistan’s jurisdiction will only be allowed to function with an official license. This provision aims to formalize the trading infrastructure and establish a legal basis for overseeing exchange activities and fulfilling anti-money laundering obligations.
Cryptocurrency Is Not Legal Tender
The law explicitly states that digital currencies do not have the status of legal tender, national currency, or securities. Regulation focuses solely on organizing mining and the operation of exchange platforms without altering the status of the national currency.
Reasons for Legalizing Mining
The decision is driven by several practical motives, including leveraging existing energy resources to create a new economic sector. Legalization also enables the formation of a registry of participants and the introduction of rules for market operators, simplifying oversight and potentially increasing industry transparency. Additionally, formal regulation creates conditions for attracting technological and investment projects within the permitted activities.
Comparison with Other Central Asian Countries
Turkmenistan’s policy fits into the regional context, where neighboring countries have adopted various approaches to mining and exchanges. For example, experiences from nearby nations show both the benefits of liberalization and risks to power grids and infrastructure, so Turkmenistan opts for a model with mandatory registration for preliminary control. For a comparison with neighboring jurisdictions’ practices, see materials on the law in Kazakhstan and other regional approaches.
What Miners and Investors Need to Know
Registration Process
Before starting mining, it is necessary to complete the state-mandated registration procedure. This measure is key: without it, mining activities will be considered unregulated, and participants will be outside official records.
Exchange Requirements
If you plan to operate through an exchange, it must have an official license if located within Turkmenistan’s jurisdiction. Platforms wishing to serve local users and conduct business in the country are required to apply for a license.
Potential Tax Obligations
The legislation establishes a system for accounting participants, creating a legal basis for future taxation, although detailed tax rules have not yet been disclosed. Participants should consider that registration facilitates tracking operations and the formation of fiscal obligations going forward.
Why This Matters
For a miner in Russia with anywhere from one to a thousand devices, this news is important primarily as an example of regional legalization and industry control approach. Turkmenistan demonstrates that countries can regulate mining without recognizing cryptocurrencies as legal tender, maintaining control through registration and licensing. The country’s significant energy resources highlight that the policy aims not only to restrict but also to integrate mining into the economy under compliance with regulations.
What to Do?
- Ensure that you or your counterparties are registered with the appropriate authorities before starting mining.
- Verify the licensing status of exchanges if you plan to withdraw or trade through platforms connected to Turkmenistan.
- Assess energy consumption and power sources for your equipment considering possible requirements and tariffs.
- Monitor the publication of detailed rules on taxation and licensing to comply with obligations correctly.
- Study neighboring countries’ experiences and regional regulatory materials to understand risks and benefits when engaging with the market.
Useful Links
Detailed explanations of the new requirements and registration procedures are compiled in a separate article on the new rules, outlining practical steps for market participants. A regional practice overview is also helpful for comparing approaches and regulatory outcomes.