Turkmenistan Embraces Cryptocurrency in Economic Overhaul

Turkmenistan, known for its isolation, has legalized cryptocurrency mining and exchange, marking a significant change for its economy. Signed by President Serdar Berdimuhamedov, the new legislation introduces a licensing scheme while keeping digital currencies from being recognized as legal tender. The move aligns with earlier efforts to modernize, such as electronic visa laws.

In a groundbreaking move, Turkmenistan has legalized the mining and exchange of cryptocurrency, signaling a major shift for its tightly regulated, natural gas-reliant economy. This development, signed into law by President Serdar Berdimuhamedov, marks a significant policy change for a nation known for its isolation.

The newly enacted legislation regulates virtual assets under civil law and implements a licensing scheme for cryptocurrency exchanges, overseen by the central bank. Despite this advancement, digital currencies in Turkmenistan are not recognized as a legal means of payment, currency, or security.

This change aligns with Turkmenistan's recent efforts to modernize, which include the adoption of electronic visas last year to ease foreign entry. The country continues to heavily depend on its natural gas exports, mainly to China, and is working to expand its pipeline infrastructure to Afghanistan, Pakistan, and India.