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Turkmenistan will legalize cryptocurrency trading in 2026 under a new regulatory framework that requires strict government licensing for exchanges, mandates KYC and AML compliance, and bans unauthorized mining operations.
President Serdar Berdimuhamedov signed the legislation Thursday, according to state media, making Turkmenistan one of the few Central Asian nations to formally regulate digital assets—albeit under tight state surveillance that gives regulators authority to halt token issuances and force refunds.
Under the new Turkmenistan crypto regulation framework—set to take effect in 2026—the government will enforce strict licensing requirements for exchanges, custodial services, and crypto-related businesses.
The law introduces mandatory Know-Your-Client (KYC) and Anti-Money Laundering (AML) rules, alongside enforced cold storage provisions for custodial operators.
Credit institutions will be explicitly banned from offering crypto services, a move experts say is designed to prevent decentralization from interfering with centralized banking power.
“The structure of the Turkmenistan crypto regulation shows the government wants innovation, but only within a system it can fully control,” said Michael Hartmann, a digital policy analyst at the London-based Centre for Emerging Technologies.
The state reserves the right to halt, void, or force refunds on token issuances, effectively giving regulators sweeping influence over project lifecycles.
A major pillar of the Turkmenistan crypto regulation is the introduction of mandatory registration for miners and mining pools.
Covert mining, private operations, or unlicensed setups will be outlawed—reflecting a broader regional trend of governments cracking down on shadow mining economies.
The country’s central bank has also been granted authority to approve distributed ledgers or operate its own. This means Turkmenistan crypto regulation may eventually push citizens and domestic businesses toward permissioned, state-monitored blockchain networks.
“This level of control is unprecedented, even by regional standards,” said Anara Suleymanova, a Central Asian financial governance researcher. “It suggests a long-term strategy for digital oversight more than a desire for true market liberalization.”
Interestingly, the Turkmenistan crypto regulation framework classifies digital assets into two buckets—backed and unbacked.
Regulators will define the liquidity conditions, backing rules, settlement processes, and emergency redemption rights for backed assets.
Meanwhile, the law clarifies that cryptocurrencies are not legal tender, currency, or securities in Turkmenistan.
This categorization mirrors global efforts to create distinct regulatory frameworks for stablecoins versus speculative tokens.
The foundation for the law was laid during a Nov. 21 government meeting where Deputy Chairman of the Cabinet of Ministers Hojamyrat Geldimyradov presented a report establishing technological, legal, and organizational principles for digital assets.
Accompanying the report was a proposal to form a special State Commission, which will act as the central overseer for all Turkmenistan crypto regulation initiatives.
The introduction of Turkmenistan crypto regulation aligns with a broader worldwide movement toward structured digital asset rules.
In the UK, the tax authority recently proposed a framework easing DeFi tax burdens, while Bank of England Deputy Governor Sarah Breeden stated the country aims to keep pace with the United States on stablecoin regulation.
Meanwhile, Basel Committee chair and Swedish central bank governor Erik Thedéen noted that global regulators may need “a different approach” to crypto risk weighting as nations diverge from the committee’s strict standards.
With the sweeping 2026 rollout, Turkmenistan crypto regulation is poised to become one of the most state-controlled digital asset frameworks in the world.
While the move marks progress toward legal recognition, it also cements the government’s dominance over how crypto can be used, monitored, and integrated into the economy.
Whether this bold approach drives innovation or suppresses it remains a question that global markets will watch closely.
