Turkmenistan’s Approach to Cryptocurrency: Centralized Authority Amidst a Decentralized Age
- Turkmenistan legalizes crypto trading by 2026 under strict state control, requiring licenses and AML/KYC compliance. - The law prohibits credit institutions from crypto services and classifies tokens without legal tender status. - Central bank oversight and mandatory registration for miners aim to centralize digital asset management. - The move aligns with global trends but raises concerns over surveillance amid internet restrictions.
Turkmenistan Embraces Cryptocurrency with Strict Regulatory Measures
Turkmenistan, traditionally known for its closed economy, is making a notable move toward the digital asset sector by officially permitting cryptocurrency trading within a highly regulated environment. This new legal framework, which will be implemented in 2026, was recently approved by President Serdar Berdimuhamedov.
- Crypto exchanges and custodial platforms will be required to obtain official licenses.
- Providers must comply with anti-money laundering (AML) and know-your-customer (KYC) standards.
- Mandatory use of cold storage for digital assets is enforced.
- Banks and other credit institutions are strictly forbidden from offering crypto-related services.
- The government retains the right to suspend, cancel, or demand refunds for token offerings, ensuring comprehensive state oversight.
Under the new law, cryptocurrencies are divided into two groups: those backed by assets and those that are not. However, neither type is recognized as legal tender, currency, or securities. Regulatory authorities will later establish specific rules for liquidity, settlement, and emergency redemption for asset-backed tokens.
Significantly, the central bank has the authority to approve or even operate its own distributed ledger networks, which could lead to the development of state-controlled blockchain systems. All mining activities, whether individual or collective, must be officially registered, and any unauthorized mining is strictly prohibited.
This comprehensive regulatory shift follows a government session on November 21, where Deputy Chairman Hojamyrat Geldimyradov presented the foundational legal, technological, and organizational steps for digital asset integration. Oversight of the sector will be managed by a proposed State Commission, which will coordinate enforcement and policy direction.
Turkmenistan’s initiative mirrors a broader international movement toward formalizing crypto regulations, similar to recent developments in the United Kingdom—such as tax deferrals for decentralized finance users—and the European Union’s MiCA licensing framework.
The country’s focus on centralized control is consistent with its overall governance style, where both information and economic activities are tightly managed by the state. Although Turkmenistan has historically remained isolated, this step into regulated digital assets could enhance its influence in regional digital finance, especially as neighboring countries like Kazakhstan and Uzbekistan also pursue crypto-friendly policies. However, the ongoing restrictions on public access to platforms like X and Telegram highlight the government’s cautious stance toward new technologies.
On the international stage, Turkmenistan’s approach illustrates the complex balance between attracting investment and maintaining state authority. While the country aims to modernize its economy through digital assets, the strong government grip on token issuance and blockchain infrastructure raises questions about surveillance and centralized control. As global regulators continue to seek a balance between innovation and oversight, Turkmenistan’s model exemplifies the challenges of integrating decentralized technologies within a centralized governance framework.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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