Turkmenistan officially put into effect the Law on Virtual Assets legalizing cryptocurrency mining and crypto exchanges as it looks to boost economic development and attract foreign investment.

The new rules, which President Serdar Berdimuhamedov signed into law on Nov. 28, provide a framework for the use, creation and exchange of virtual assets in the country.

A 2025 study on Organization of Islamic Cooperation (OIC) member states, which include Turkmenistan, concluded that allowing crypto is good for the economy.

"Cryptocurrency legalization has significantly boosted economic growth in developing nations by enhancing financial inclusion and providing the legal clarity essential for attracting digital foreign direct investment," said Muhammad Rheza Ramadhan, an economist and researcher at Indonesia’s Ministry of Finance.

The law defines virtual assets as property, not legal tender or securities, and divides them into two categories: secured (backed by an underlying asset) and unsecured (such as bitcoin). Virtual assets cannot be used as payment for goods or services and must be treated strictly as property or investment instruments.

Cryptocurrency mining by both companies and individuals becomes permissible, provided the miners register with the Central Bank of Turkmenistan. The law imposes technical standards on mining operations and explicitly prohibits covert mining methods like cryptojacking.

The law also authorizes crypto exchanges and custodial services to operate, again provided a license is issued by the central bank. Both domestic and foreign entities can own these services, except those based in or associated with offshore jurisdictions. Exchanges must enforce know-your-customer and anti money-laundering rules, and anonymous transactions or wallets are not allowed.