Turkmenistan has adopted a law that legalizes the crypto industry and places it under strict state control. For one of the world’s most closed economies, this is a rare change of course.
According to Business Turkmenistan, on November 28, President Serdar Berdimuhamedov signed a document that sets the rules for the entire crypto sector in the country.
The law will come into force in 2026. By then, all crypto companies will need to obtain licenses, verify clients, and keep assets in cold wallets. Banks are not allowed to work with crypto.
The state reserves the right to stop the issuance of tokens and require projects to return money to users.
Mining and pools will also be regulated; their activities must be open and registered. A separate provision concerns the Central Bank of Turkmenistan, which will be able to approve distributed ledgers or launch its own. In the long term, this could lead to citizens transitioning to infrastructure where access and operations are effectively controlled by the state.
The law states that cryptocurrencies in Turkmenistan are not considered currency or a means of payment. Assets are divided into backed and unbacked. Rules for liquidity and emergency buyback will be established later for backed assets.
President of Turkmenistan Serdar Berdimuhamedov. Source: Wikimedia
The law appeared after a meeting held on November 21. At that time, Deputy Chairman of the Cabinet of Ministers Khodjamyrat Geldimyradov presented a detailed report on the topic.
The document outlined the foundations of the legal, technological, and organizational framework for the introduction of digital assets in the country. It also proposed the creation of a separate state commission to oversee the development of the new sector.
Turkmenistan follows the global trend
Turkmenistan’s decision fits into a global trend. More and more countries are hastily forming their own rules for cryptocurrencies and stablecoins. This week, the UK tax authority introduced a draft of a new model that makes life easier for DeFi users. Now, capital gains tax for those participating in crypto lending or liquidity pools can be deferred until the sale of the original token.
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Deputy Governor of the Bank of England Sarah Breeden also stated that the UK plans to keep pace with the US regarding stablecoin regulation. This suggests that major jurisdictions may move on roughly parallel tracks, especially now that stablecoins are increasingly entering payment and settlement systems.
International regulators also cannot ignore what is happening. The head of Sweden’s Central Bank and chairman of the Basel Committee Erik Thedéen admitted that the current approach to the risk coefficient of 1,250% for crypto assets will have to be revised. The reason is simple — some countries simply refuse to comply with the old requirements.
A state with a strict control system turns to crypto
Turkmenistan, a former Soviet republic in Central Asia, is landlocked and has about seven million inhabitants. The economy is mainly based on natural gas exports. The political system is highly centralized, with power concentrated in the president, and the country is often called one of the most closed and repressive. X and Telegram are also blocked there, so the country consistently retains its place on the list of restricted jurisdictions.
A permanently burning crater in Turkmenistan. Source: Wikimedia
This same state, with a national holiday in honor of melons, owns some of the largest gas reserves in the world. One of the fields fuels a giant crater that has been burning for decades and is known as the “Gates of Hell.” The capital, Ashgabat, has long been in the Guinness Book of Records as the city with the most buildings clad in white marble and the largest indoor Ferris wheel.
