Turkmenistan Approves Crypto Starting 2026, But The State Still Holds Strict Control

JAKARTA Turkmenistan has officially authorized the use of crypto assets under a very strict legal framework, a major step for one of the most closed economies in the world. This new policy was signed by the President of Turkmenistan, Serdar Berdimuhamedov, on November 28, and will take effect in 2026, as reported by Business Turkmenistan.

The rules open up legal space for digital assets and mining activities, but the central bank maintains full control over the entire ecosystem. The government applies licensing requirements for crypto exchanges and custodial services, requires procedures for recognizing and preventing money laundering, and requires the use of cold storage for digital assets.

Financial institutions are prohibited from offering crypto services, while countries have the authority to stop, cancel or order refunds in token issuance. Mining and mining pool activities must be registered, and illegal operations are explicitly banned.

This law also gives the central bank the authority to certify the use of distributed lenders or build its own infrastructure, encouraging the local crypto ecosystem to move within a supervised and licensed network. Even so, crypto assets will not be recognized as legal tender, currency, or securities.

Regulators divide digital assets into 'jaminant' and secured' categories, with the mandate to set liquidity standards, settlement protocols, and emergency ransom procedures for guaranteed tokens.

This new policy follows a government meeting on November 21, when Deputy Chairman of the Ministerial Cabinet, Hojamyradov, explained the basic technology and regulations to introduce digital assets. The government also proposed the establishment of a special State Commission for the sector.

Turkmenistan previously imposed a comprehensive ban on trading, mining, and the use of crypto assets. Authorities routinely raid illegal miners and confiscate devices, although underground activities continue through VPNs and peer-to-peer platforms. The government seeks to maintain the stability of the currency and minimize the risk of speculation and illegal transactions, amid strict internet restrictions and extensive digital surveillance.

The Central Asian country has a population of about 7.6 million people and relies on natural gas exports. Its political system is highly centralized, with strict restrictions on the media and the internet, including blocking platforms like X and Telegram.

Turkmenistan's move comes at a time when many countries amplify digital asset regulations. Vanuatu passed the Virtual Asset Service Provider Act, Pakistan opened the market for international exchanges through the new crypto authorities, while Poland launched strict rules in line with the European Union's MiCA framework.

Britain is increasing crypto licensing approval for large institutions and considering tax leniency for decentralized financial activities, while Bank of England officials show alignment with stablecoin regulations in the United States. In Northern Europe, Sweden's central bank governor Erik ThedREEN indicated a possible adjustment to Basel's rules regarding crypto exposure.

With its latest move, Turkmenistan is placing itself in a global trend moving towards official supervision of digital assets, while maintaining its trademark: strict state control over any crypto space gap.