Turkmenistan Legalizes Crypto Mining and Exchanges to Monetize Gas Reserves

Turkmenistan has taken a rare step toward economic liberalization, officially legalizing cryptocurrency mining and regulated exchanges as of January 1, 2026. The move positions the energy-rich Central Asian nation to convert excess natural gas into digital assets, while keeping tight state controls firmly in place.

A new law signed by Serdar Berdimuhamedov in late 2025 entered into force this week, bringing “virtual assets” under civil law for the first time. Mining is now legal for registered companies and entrepreneurs, while crypto exchanges must obtain licenses from the Central Bank of Turkmenistan and comply with strict KYC/AML requirements and custody standards.

Crucially, the law draws a clear line between investment and everyday money: cryptocurrencies are explicitly not legal tender and cannot be used for payments, wages, or salaries. They are treated as property, not currency or securities.

Why it matters

Turkmenistan holds the world’s fourth-largest natural gas reserves, but its economy remains heavily dependent on exports, primarily to China. By legalizing mining, the state can monetize surplus power into hard digital assets without relying solely on pipeline routes. The strategy mirrors approaches seen in other energy-abundant jurisdictions that have opted to regulate, rather than ban, crypto activity to capture value from cheap electricity.

At the same time, this is a tightly managed opening. Internet access remains heavily restricted, suggesting that state-sanctioned entities (not retail users) will be the primary beneficiaries. Exchanges operate under central bank supervision, and capital controls remain intact.

Stack 10% More on Your First BTCC Deposit

Start Trading

The broader context

The reform marks one of the most notable policy shifts for Turkmenistan, one of the world’s most isolated economies. It follows a gradual pattern of controlled changes, including the introduction of electronic visas last year to ease entry for foreigners.

For global crypto markets, the takeaway is strategic rather than speculative: energy-rich states continue to explore regulated crypto as a tool for economic diversification, turning excess power into value, while maintaining strict oversight at home.