- The Turkmenistan government has reported that it has limitedly legalized virtual asset mining and exchange operation.
- Businesses must obtain a license and be subject to ongoing supervision by related authorities such as the central bank.
- Virtual assets are recognized only as investment assets, and strict regulations such as anti-money laundering apply.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Turkmenistan has legalized the mining of virtual assets (cryptocurrencies) and the operation of exchanges. It is a step to diversify an economy dependent on natural gas exports and to attract foreign investment.
According to CoinPedia on the 1st (local time), the "Law on Virtual Assets" signed by Turkmenistan President Serdar Berdimuhamedow on November 28 last year officially came into effect this year.
The bill allows virtual asset mining and exchange operation in Turkmenistan only for corporations and individual business operators that have government permission. However, this is a limited legalization carried out under strict government control. Companies seeking to operate must obtain a license. They will also be subject to ongoing supervision by related authorities such as the central bank, the cabinet, and the Ministry of Finance and Economy.
The government plans to crack down strongly on illegal mining and trading without permission. Exchanges must also comply with tax obligations and establish monitoring systems to ensure virtual assets are not abused for illegal activities such as money laundering.
The bill defines virtual assets not as legal tender but as "digital assets." Accordingly, they cannot be used as means of payment or salary in everyday life and are recognized only as investment assets that can be stored and traded under the supervision of regulators. Licensed virtual asset service providers must keep the majority of customers' assets in cold wallets and comply with anti-money laundering (AML) obligations.
