Turkmenistan legalises crypto mining and exchanges in shift for economy

In a significant shift for the country’s tightly controlled, gas-dependent economy, Turkmenistan, one of the most remote countries on earth, has officially legalized mining and trading cryptocurrency.

The country’s central bank approved the legislation on Thursday, which establishes a licensing framework for cryptocurrency exchanges and regulates virtual assets in accordance with civil law.

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However, digital currencies will continue to be regarded as neither a form of payment nor as a security.

The former Soviet republic of Central Asia, Turkmenistan, depends heavily on the export of its vast natural gas reserves to support its economy.

The country imports most gas from China, and Turkmenistan is currently developing a pipeline to supply gas to Afghanistan, Pakistan, and India.

Turkmenistan has been making efforts to digitize both its economy and its government functions.

A law introducing electronic visas was passed in April that would have made it easier for foreigners to enter.

The tightly regulated country, which gained independence in 1991, typically forbade prospective visitors, with many visa applications being rejected for ambiguous reasons.

Under its first president, Saparmurat Niyazov, who defied both Western and Russian influence, Turkmenistan, a mostly deserted nation of seven million people and the fourth-largest natural gas reserves, officially declared itself neutral in 1995.

Prior to his death in 2006, Niyazov had sway over politics, a policy of isolationism from the outside, and a nation whose economy was heavily dependent on natural gas exports.

Berdymukhamedov has signaled some potential since taking over as president from his father in 2022.

Before a meeting with Russian President Vladimir Putin, Turkish President Recep Tayyip Erdogan, and Iranian President Masoud Pezeshkian in December, he made hints about possible political reforms.

Without providing further details, Berdymukhamedov stated in the article, “We are working hard to make our neutral nation a powerful, democratic, and rule-of-law state where citizens live peaceful lives.”

While the government still has strict control over the country’s internet, social media has been made less restrictive, and the country has pledged to liberalize its visa system and expand its air transport links.

The Committee to Protect Journalists labeled the nation as one of the worst countries for independent media in the world.