Digital asset adoption continues to grow after Turkmenistan announced plans to legally accommodate cryptocurrency operations from 2026. Following this move, the Central Asian nation joins the expanding list of countries opting for regulation in the crypto industry against an outright ban.

Turkmenistan Explores Crypto Amid Economy Diversification 

On Friday, Reuters reported that President Serdar Berdymukhamedov of Turkmenistan signed a new law that will permit registration of crypto exchanges and crypto mining companies from January 1, 2026. 

Notably, this development appears to represent part of the state government’s recent efforts to diversify its economy beyond gas exports, following Turkmenistan’s status as the nation with fourth fourth-largest gas reserves. Reuters also confirmed the government’s motive behind its new regulation, stating an intent to drive investment and speed up digitalization. 

While there are no official data on the level of crypto ownership in Turkmenistan, citizens’ ability to purchase digital assets using credit/debit cards, as well as the existence of Bitcoin ATMs, indicate significant traction requiring legalization. In particular, local Kyrgyzstan media states the new regulations signed by President Berdymukhamedov assert the legal status of cryptocurrencies as civil assets but with no economic power to serve as currency or means of payment. 

Furthermore, all licensed crypto exchanges are mandated to ensure the protection of users’ data and deposits. Meanwhile, mining operations can be performed by both individuals and local businesses following approval and registration with the recognized state authority. Other aspects of Turkmenistan’s crypto regime cover specific definitions of terms, and operations center around offering, transfer, issuance, and storage.

Crypto Adoption Surges In Central Asia

Beyond Turkmenistan, other nations in Central Asia, including Kazakhstan and Uzbekistan, are also ramping up crypto regulatory efforts to create an enabling environment for digital assets adoption. Notably, Uzbekistan has completed legal preparations to formally adopt stablecoins for payments in 2026, while also permitting the trading of tokenized stocks on licensed exchanges. 

Meanwhile, Bitcoinist reported that Kazakhstan has recently allocated $500 million – $1 billion for a national reserve fund with a potential launch slated for 2026. In addition, the former soviet state also introduced a national stablecoin, KZTx, in collaboration with the world’s biggest exchange, Binance. 

Taken together, these crypto-friendly moves show that Central Asian nations are doubling down on blockchain and digital assets as an emerging pillar of the global financial sector. 

According to data from CoinMarketCap, the total crypto market cap is now valued at $3.05 trillion following a modest rebound in the last week after an extended correction that began in early October. 

• The rules include licensing, AML checks, cold storage, and strict state authority over token issuances.
• Crypto assets are classified as backed or unbacked and are not legal tender in Turkmenistan.
• The move follows a Nov. 21 government meeting focused on digital asset policy.

Turkmenistan has taken a major step towards formalising its digital asset sector, joining a wave of countries introducing detailed crypto regulations as global frameworks evolve.

The move was confirmed in a Nov. 28 report by Business Turkmenistan, which said President Serdar Berdimuhamedov had approved a new law that will come into effect in 2026.

The legislation introduces a tightly controlled structure for digital assets in a country long known for strict information policies and limited access to outside technologies.

It places crypto exchanges, custodial services, and mining under clear state-defined rules, positioning Turkmenistan within a growing international effort to manage crypto adoption more systematically.

Sweeping rules

The new law establishes licensing procedures for exchanges and custodial platforms.

It sets know your client and Anti Money Laundering checks as standard requirements, along with mandatory cold storage obligations for service providers.

The framework also prevents credit institutions from offering crypto services. The state can stop, void, or enforce the refund of token issuances, placing digital asset activity squarely under government authority.

Mining is a central focus of the legislation. Individuals and organisations must register mining and mining pool operations. Covert mining activity is banned.

The central bank is also given the power to authorise distributed ledgers or operate its own, opening the door to permissioned systems that could direct transactions and digital asset activity through state-managed infrastructure.

Strict classifications

Turkmenistan’s law also defines the legal status of crypto assets. Digital currencies are not considered legal tender, currency, or securities within the country. Instead, the law divides them into two categories: backed and unbacked.

Regulators will later set rules for the liquidity of the backing, settlement requirements, and emergency redemption arrangements for assets in the backed category.

This structure hints at a system in which any asset with underlying backing will face closer supervision, while unbacked assets remain strictly delineated in legal terms.

The legislation was introduced following a Nov. 21 government meeting.

Deputy Chairman of the Cabinet of Ministers Hojamyrat Geldimyradov presented a report outlining the legal, technological, and organisational basis for the introduction of digital assets.

The report was accompanied by a proposal to establish a special State Commission that will oversee the sector and coordinate regulatory decisions as the framework is implemented.

Global context

Turkmenistan’s shift mirrors a wider push among governments to tighten their regulatory approaches to crypto and stablecoins.

Earlier this week, the United Kingdom’s tax authority outlined a new plan that allows decentralised finance users to defer capital gains taxes on crypto lending and liquidity pool activity until they sell the underlying token.

The move reduces the administrative burden on users and brings policy closer in line with how traditional assets are taxed.

In another development, Bank of England Deputy Governor Sarah Breeden said she expects the UK to move in parallel with the United States on stablecoin policies.

This suggests that major economies may establish similar frameworks as stablecoins become more integrated into payment and settlement systems.

International bodies are also reassessing earlier positions.

Erik Thedéen, governor of Sweden’s central bank and chair of the Basel Committee on Banking Supervision, recently indicated that the group may need a different approach to its current risk weighting for crypto exposures after some countries resisted adopting the 1,250% standard.

This reflects rising pressure for coordinated regulatory models as digital asset markets expand.

Political backdrop

The regulatory shift comes against the backdrop of Turkmenistan’s tightly controlled political landscape.

The former Soviet republic, home to around 6.5 to 7 million people, relies heavily on natural gas exports and maintains one of the world’s most centralised presidential systems.

It appears in lists of countries where X and Telegram are banned.

The country is also known for distinctive landmarks, including a permanently burning natural gas crater known as the door to hell, the white marble architecture of its capital, Ashgabat, and a national holiday dedicated to melons.

These features sit alongside heavy state oversight, making the introduction of a structured crypto law a notable change in approach.

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