ASHGABAT, Turkmenistan — In a significant development for its economy, Turkmenistan has officially legalized the mining and exchange of cryptocurrency, marking a shift from its historically tightly controlled economic structure. The new legislation, signed into effect by President Serdar Berdimuhamedov, signifies a regulatory framework for virtual assets, aiming to bring them under civil law and establish a licensing scheme for cryptocurrency exchanges that will be overseen by the nation’s central bank.
Despite this advancement, cryptocurrencies will not be recognized as a valid means of payment, currency, or security within Turkmenistan. The autocratic regime continues to maintain strict control over internet access, limiting the potential reach and utility of digital currencies among its citizens.
Turkmenistan, a country in Central Asia that emerged from Soviet influence after gaining independence in 1991, relies predominantly on its substantial natural gas reserves, with China being the primary importer. Presently, the nation is engaged in developing a pipeline intended to deliver gas to Afghanistan, Pakistan, and India, further highlighting its energy-centric economic strategy.
In addition to the cryptocurrency legislation, Turkmenistan began implementing a new law last year to introduce electronic visas, which aims to facilitate entry for foreign visitors. Historically, the country has enforced stringent entry regulations, often leading to visa applications being denied without clear explanations. This latest initiative reflects an effort to enhance tourism and international engagement, although the efficacy of such measures remains to be seen in the context of Turkmenistan’s overall governing policies.
