Digital Manat and Crypto Mining: Understanding Turkmenistan's New Law "On Virtual Assets"

The Law of Turkmenistan "On Virtual Assets," which came into force on January 1, 2026, has become the foundation for a legal crypto market in the country. Unlike many foreign counterparts, Turkmen legislation has created a comprehensive oversight system involving several key agencies.

1. "Architects" of Control: Who is Responsible? (Article 9)

The law clearly assigns responsibilities. The country's "digital maneuver" is being driven not by a single agency, but by a powerful interagency alliance, including the Cabinet of Ministers of Turkmenistan:

The Central Bank acts as the main authorized body—it issues licenses and sets the rules of the game.

The Ministry of Finance and Economy ensures the transparency of financial flows.

The Ministry of Communications and the Ministry of Energy oversee the technical infrastructure: from the stability of internet channels to the legality of electricity consumption by mining farms.

1. Legal Mining: Not Just a Desire, but Also a Responsibility

The law integrates mining activities into the country's unified legal framework. It is now an officially recognized form of entrepreneurship (for legal entities and individual entrepreneurs), opening up new horizons for the development of high-tech businesses, provided a number of conditions are met:

Registration in the register of the authorized body (Central Bank).

Transparent energy consumption: interaction with relevant agencies to ensure the stability of the energy system.

Cyber hygiene: use only certified platforms and equipment.

1. Digital Property, not a Means of Payment

An important legal nuance: virtual assets are recognized as civil rights (property) in Turkmenistan. They can be issued, stored, and exchanged on specialized exchanges, but they do not replace the national manat in everyday transactions. This is done to ensure the stability of the country's financial system.

2. Ethical Filter and Protection of Rights

The law introduces unprecedented measures to protect against false advertising. Private players are prohibited from using state symbols or terms indicating affiliation with the government in their names (Article 44). This directly hinders financial pyramid schemes.

Important Information "On the Ground" (Additional Clarifications)

For Individuals: Personal Mining and Taxes

The law distinguishes between industrial and individual mining.

Individuals are not prohibited from owning assets, but any activity related to their "mining" must be registered as an individual entrepreneur.

Tax Aspect: It is important to understand that income from the sale of virtual assets is subject to declaration. Since this is considered property, income tax provisions apply.

Security: The state is not liable for the loss of assets due to volatility or theft from personal wallets (Article 41).

For Foreign Investors: Transparency and Repatriation

Foreign capital is one of the goals of this law. What will interest them:

— Legal status: Investors receive protection under the Foreign Investment Law, as crypto is now a legal asset.

— Provider license (VASP): Foreign companies can open licensed crypto exchanges in Turkmenistan, but are required to comply with data storage requirements on local servers (data localization).

— Capital cleanliness: Strict compliance with FATF (anti-money laundering) regulations makes the Turkmen jurisdiction "white" and transparent for international banks.

Briefly about the main points:

— Mining at home "just for fun" is prohibited—you need to register as an individual entrepreneur.

— Made money on crypto? —Don't forget to reflect this in your tax return.

— Foreign partners are welcome to create licensed exchanges, provided they comply with cybersecurity.

The full text of the Law of Turkmenistan "On Virtual Assets" is available for review at this link.