Turkmenistan legalizes crypto mining and trading under new framework

Turkmenistan has officially legalized domestic cryptocurrency mining and trading as a new law regulating digital assets came into full effect on Thursday.

In late November, Turkmenistan President Serdar Berdymukhamedov signed the law that brings digital asset exchanges and crypto mining companies under a licensing regime overseen by its central bank. It also defines the legal and economic status of cryptocurrencies, Reuters previously reported.

The country, which is one of the world's most closed nations, operates a tightly controlled economy long anchored in its rich natural gas resources, which rank as the fourth-largest globally.

While crypto mining and trading are now permitted, cryptocurrencies will not be recognized as a means of payment in the Central Asian country. Internet access also remains tightly regulated and controlled by the government.

The implementation of this law signals a strategic move by Turkmenistan to diversify and digitalize its gas-dependent economy through state-sanctioned digital asset activities. A spokesperson for the government told Reuters in November that the legislation is expected to attract investment and advance the country's digitalization efforts.

The former Soviet nation also adopted a new law last April that introduced electronic visas to simplify entry for foreigners, AP reported.