Turkmenistan Legalizes Crypto in Historic 2026 Shift – But State Retains Tight Control

Turkmenistan has taken a landmark step by legalizing cryptocurrency under a tightly regulated framework, marking a significant policy shift for one of the world's most closed economies. President Serdar Berdimuhamedov signed the legislation on November 28, with the law set to take effect in 2026. The move establishes a controlled environment for the crypto industry while ensuring strict state oversight.

The new law introduces licensing requirements for crypto exchanges and custodial services, enforces know-your-client and anti-money laundering protocols, and mandates cold storage solutions for digital assets. Credit institutions are prohibited from offering crypto services, and the state retains the authority to intervene in token issuances. Cryptocurrency mining operations must be registered, with covert activities explicitly banned.

Despite these regulatory advancements, the law clarifies that cryptocurrencies will not be recognized as legal tender, currency, or securities. The central bank is empowered to authorize distributed ledgers or operate its own infrastructure, steering participants toward permissioned and surveilled networks.