The Central Asian nation of Turkmenistan is legalizing the mining and trading of cryptocurrencies, regulating the activities of entities engaged in these industries.
Starting from January, mining companies will have to comply with strict registration rules, while cryptocurrency exchanges will need a license to provide their services.
Turkmenistan regulates the minting and turnover of digital coins
Turkmenistan’s President Serdar Berdimuhamedov has signed a “law on virtual assets,” which legalizes crypto mining and the operations of platforms trading digital currencies.
The comprehensive framework regulates a range of crypto-related activities, including the issuance, storage, and circulation of cryptocurrencies in the country.
While these will not be recognized as a means of payment in the former Soviet republic, they will be subject to the nation’s civil law.
The crypto legislation will enter into force on January 1, 2026, the news outlet Turkmenportal reported Friday, quoting an announcement in the official gazette Neytralny Turkmenistan.
Cryptocurrency miners required to register with the state
According to the new law, both individual entrepreneurs and legal entities will be permitted to mine cryptocurrencies in Turkmenistan.
All involved in the business will be obliged to register with the Central Bank of Turkmenistan (CBT) by filling out an electronic form.
Upon approval of the submitted information, the applicants will be issued an indefinite certificate that will allow them to legally engage in their activities.
Registration will be mandatory for their mining equipment as well. The miners will also have to provide a valid crypto wallet and comply with technical requirements and fire safety standards.
The framework largely mirrors that of Russia, which legalized and regulated its mining sector last year, but is still facing a low percentage of miner registrations with its Federal Tax Service (FNS).
Hidden cryptocurrency mining, of the type relying on unauthorized exploitation of the computing power of someone else’s hardware, will be strictly prohibited.
Law introduces licensing for crypto exchanges
Cryptocurrency exchanges and other providers of services for virtual assets in Turkmenistan will operate under a licensing regime. The licenses will be issued by the country’s monetary authority.
These platforms will be able to open crypto wallets for clients only after conducting thorough identification, in accordance with the know-your-customer procedures envisaged in existing anti-money laundering legislation.
The newly adopted virtual assets act strictly prohibits the use of Turkmenistan’s symbols by companies in the cryptocurrency space.
Miners, coin issuers, and crypto service providers are banned from using “Turkmenistan,” “Turkmen”, “Turkmeni” or the words “state” and “national” in any form, language or combination in their own brand names and symbols.
The law also regulates advertising in the crypto sector. Ads must feature warnings about the risks involved, including detailed information regarding the potential loss of funds.
Portrayals of crypto transactions as an easy way to get rich, as well as the use of images of minors in advertisements, are not allowed either.
Marketing materials shall also clearly indicate that the digital assets are not backed by the state, which cannot be held liable for their devaluation.
Central Asia is becoming a crypto hotspot
The new legislation will allow Turkmenistan to catch up with its neighbors in the region, which is becoming a crypto hotspot in Eurasia, that have already advanced in terms of crypto regulation.
Earlier in November, Kazakhstan’s President Kassym-Jomart Tokayev signed a law regulating the circulation of decentralized digital currencies in his nation’s economy and lifting certain restrictions on their mining.
Also this month, Kyrgyzstan’s central bank permitted commercial banks to open escrow accounts for crypto transactions and launched a gold-backed stablecoin pegged to the U.S. dollar, USDKG, as reported by Cryptopolitan.
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Source: https://www.cryptopolitan.com/turkmenistan-legalize-crypto-mining-trading/
