Turkmenistan Launches Legal Framework for Crypto Market
Date: 2025-12-01 Author: Gabriel Deangelo Categories: IN WORLD
At the end of November, Turkmenistan's authorities approved the "Law on Virtual Assets," which, for the first time, defined cryptocurrency at the state level and defined who has the right to engage in activities related to digital assets. The document paves the way for the legal operation of crypto exchanges, services providing services in the virtual asset sector, and mining companies. Oversight of this new sector has been assigned to the country's Central Bank.
The law establishes that crypto assets are recognized as property but are not considered legal tender. This means that digital coins are officially considered part of civil circulation, but their use for payments is prohibited. Any entrepreneur or private miner planning to operate in this sector must obtain a license. The Cabinet of Ministers will determine the permitting procedure.
Particular attention is paid to combating illegal mining. The law explicitly states that the covert use of someone else's equipment without the owner's consent is now classified as a violation and is prosecuted under the new regulations. At the same time, crypto service owners are required to ensure client identification and comply with anti-money laundering and counter-terrorism financing measures. Platform users will undergo verification similar to banking procedures, with the caveat that the state is not responsible for funds deposited on crypto exchanges.
Lawmakers also established rules for marketing communications. When promoting services, companies must clearly state that virtual assets are not a means of payment. Furthermore, advertising cannot create the illusion of guaranteed profits or easy money. Ostentatious displays of luxury that could create unrealistic expectations in customers are also prohibited.
According to Turkmen media, one of the key goals of the law is the formation of a transparent and regulated digital economy. The authorities hope that the established standards will allow for the control of crypto asset circulation, increase investor confidence, and ensure the safe development of the new financial sector. At the same time, the country is seeking to strengthen its position in digitalization and attract foreign investment in technology projects.
Interest in regulating the cryptosphere is also growing in neighboring countries. Kazakhstan previously signed a document simplifying the circulation of digital assets and introducing a licensing mechanism for trading platforms. Against this backdrop, Turkmenistan's initiative appears to be a logical continuation of a regional trend, where countries are increasingly seeking to bring order to the crypto industry and ensure legal certainty for its participants.
