Turkmenistan has officially made bitcoin mining legal and given its exchanges the green light to operate within the country. The new rules, effective January 1, 2026, are big changes for the country, which is known for having a very closed and tightly controlled economy.

The new law is called the Law on Virtual Assets, signed by President Serdar Berdimuhamedov in late November 2025. The government says the law is meant to modernize the economy, attract foreign investors, and reduce the country’s heavy dependence on natural gas exports.

Under the law, people and companies are allowed to mine and trade digital assets, but only if they follow strict rules. Bitcoin and digital assets are treated as property, not as money. This means people cannot use bitcoin to buy goods, pay salaries, or make everyday payments.

The Central Bank of Turkmenistan is in charge of overseeing the digital asset sector. Anyone who wants to mine bitcoin or run a digital asset exchange must get a license from the central bank. All equipment and operations must also be officially registered with the government.

Both local and foreign companies are allowed to take part in the digital assets industry. However, they must follow strict regulations. Exchanges must check users’ identities and follow anti–money laundering rules.

Anonymous wallets and secret transactions are completely banned, meaning every transaction and address should be traceable to a company or an individual. The law also bans “hidden” or illegal mining.

Exchanges must keep most digital assets in secure offline storage, known as cold wallets. If companies break the rules, the government can suspend or cancel their licenses.

Supporters of the policy say these laws can help developing economies. Economist Muhammad Rheza Ramadhan said, “Cryptocurrency legalization has significantly boosted economic growth in developing nations by enhancing financial inclusion and providing the legal clarity essential for attracting digital foreign direct investment.”

Turkmenistan’s economy depends mostly on selling natural gas, especially to China. The government hopes bitcoin mining can help use excess energy and create new sources of income beyond gas exports.

Even with legalization, the government is keeping tight control. Only approved companies can operate, and several state agencies will monitor the activities. The system is designed to allow bitcoin investment and mining without giving up government oversight.

There are also practical limits. Internet access in Turkmenistan is heavily controlled, which could slow the growth of bitcoin mining and exchanges. Experts say this means the sector will likely grow slowly and carefully.

The new laws are part of small economic changes the country has made in recent years. Turkmenistan has introduced electronic visas to attract visitors and slightly relaxed restrictions on social media, though independent media remains very limited.