Key Points
- Turkmenistan has officially legalized cryptocurrency mining and exchanges.
- President Serdar Berdimuhamedov signed the new legislation into law.
- Digital currencies will not be recognized as a legal means of payment.
- The country’s central bank will oversee a new licensing system for exchanges.
Turkmenistan, one of the world’s most closed-off countries, made a surprising move on Thursday. President Serdar Berdimuhamedov signed a new law that officially legalizes cryptocurrency mining and exchanges. This is a huge shift for a nation with a tightly controlled, gas-fueled economy.
The new legislation puts crypto under the country’s civil laws. It sets up a licensing system for crypto exchanges, which the central bank will oversee. However, there are some major limitations.
The government made it clear that digital currencies are not legal tender. You still can’t use Bitcoin or other coins to buy things in stores, and they won’t be treated as official currency or securities.
This move is significant because Turkmenistan is known for its isolation. The former Soviet country relies almost entirely on selling its vast natural gas reserves to other nations, with China as its largest customer. The government also keeps a tight grip on the internet, which could make crypto trading a bit tricky for its citizens.
This isn’t the only sign that the country may be gradually reopening. Last year, Turkmenistan introduced an electronic visa system to make it easier for foreigners to visit.
For decades, getting into the country has been notoriously difficult. While this new crypto law is a significant step, it appears to be part of a deliberate, controlled effort to modernize the economy without relinquishing too much control.
