Turkmenistan Legalizes Cryptocurrency Mining and Exchanges

Significant Change for the Country's Economy

Turkmenistan, one of the most isolated nations in the world, has officially legalized cryptocurrency mining and exchanges, marking a major shift for its tightly controlled economy that heavily relies on gas. President Serdar Berdimuhamedov signed the legislation on Thursday, regulating virtual assets under civil law and establishing a licensing system for cryptocurrency exchanges, supervised by the country's central bank.

However, cryptocurrencies will not be recognized as a means of payment, currency, or security. Turkmenistan, a former Soviet republic in Central Asia, largely depends on exporting its vast natural gas reserves to sustain its economy. China is the country's main gas importer, and Turkmenistan is currently working on a pipeline to supply gas to Afghanistan, Pakistan, and India.

In April, Turkmenistan adopted a law introducing e-visas to simplify entry for foreigners. After gaining independence in 1991, the country generally imposed strict entry requirements on visitors, with many visa applications being rejected without clear reasons.

Under the leadership of its first president, Saparmurat Niyazov, Turkmenistan officially declared neutrality in 1995, rejecting the influence of both the West and Russia. Since taking office in 2022, Berdymukhamedov has indicated a degree of openness, suggesting potential political reforms. However, the internet remains tightly regulated, and press freedom is severely restricted, with Turkmenistan classified by the Committee to Protect Journalists as one of the worst countries in the world for independent media.