Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Turkmenistan’s Approach to Cryptocurrency: Centralized Oversight Amidst a Decentralized Age

Turkmenistan’s Approach to Cryptocurrency: Centralized Oversight Amidst a Decentralized Age

Bitget-RWA2025/11/28 18:10
By:Bitget-RWA

- Turkmenistan legalizes crypto trading under strict 2026 regulations, granting state control over exchanges, mining , and custodial services. - Law mandates KYC/AML compliance, bans traditional banks from crypto services, and classifies digital assets into "backed" and "unbacked" categories. - Central bank gains authority to operate state-monitored distributed ledgers, contrasting with decentralized approaches in South Korea and Bhutan. - Framework aims to balance innovation with oversight, testing Turkme

Turkmenistan Embraces Cryptocurrency with Strict Oversight

In a landmark decision, Turkmenistan has approved the legalization of cryptocurrency trading, introducing a comprehensive regulatory system that will come into force in 2026. This marks a dramatic policy shift for a nation known for its closed economy. President Serdar Berdimuhamedov has enacted legislation that creates a highly regulated environment for crypto exchanges, custodial platforms, and mining activities, ensuring that the government maintains significant oversight and intervention powers over digital asset operations. While this move echoes global trends toward crypto regulation, Turkmenistan’s approach is notable for its emphasis on centralized supervision alongside technological advancement.

Key Provisions of the New Crypto Law

  • Mandatory licensing for all crypto service providers
  • Strict know-your-customer (KYC) and anti-money laundering (AML) protocols
  • Traditional banks are barred from offering crypto-related services
  • Digital assets are classified as either “backed” or “unbacked,” with regulatory authorities setting liquidity and redemption rules for the former
  • Cryptocurrencies will not be accepted as legal tender or considered securities
  • The central bank is empowered to authorize or manage distributed ledger systems, potentially steering users toward state-controlled platforms
  • Exchanges must adhere to cold storage requirements, and unauthorized mining is strictly forbidden

Institutional Oversight and International Context

This legislative development follows a government session led by Deputy Prime Minister Hojamyrat Geldimyradov on November 21, where plans were laid for a dedicated State Commission to supervise the crypto sector. Turkmenistan’s strategy aims to formalize digital asset governance while addressing the risks associated with decentralized finance. The country’s regulatory stance mirrors international movements, such as the UK’s proposal to delay capital gains taxes for DeFi users and the Bank of England’s focus on stablecoin oversight.

Comparisons with Other Nations

Turkmenistan’s model stands in contrast to South Korea’s robust anti-money laundering measures, which include proactive asset freezes and increased cooperation with organizations like the Financial Action Task Force. Meanwhile, Bhutan’s adoption of Ethereum for digital identification systems and its $970,000 ETH staking initiative through Figment demonstrate the region’s diverse blockchain experiments. Unlike these examples, Turkmenistan prioritizes state management over decentralization, a strategy that could shape how other tightly controlled economies approach crypto integration.

Looking Ahead: Challenges and Implications

As the law takes effect in 2026, Turkmenistan faces the challenge of fostering a crypto ecosystem while safeguarding its economic independence. The government’s rigorous licensing and monitoring requirements are designed to deter illegal activities without completely hindering technological progress. However, by denying cryptocurrencies legal tender status and granting the central bank significant authority, the state signals that digital assets will serve as instruments of financial modernization under its direction, rather than as alternatives to conventional banking.

Global Significance

As regulators worldwide contend with the rise of decentralized finance, Turkmenistan’s tightly controlled approach provides insight into how authoritarian governments may adopt new technologies while retaining power. The effectiveness of this model will hinge on the country’s ability to align with international standards and maintain its grip on the evolving crypto landscape.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

SEC Investigates Crypto Company Connected to Trump for Delayed Disclosures and Management Issues

- SEC investigates Alt5 Sigma over delayed CEO suspension disclosure and $1.5B token swap linked to Trump-backed World Liberty Financial. - Discrepancies in reporting a six-week delay in publicizing Peter Tessopoulos' suspension raise compliance concerns and triggered an 83% stock plunge. - Firm's ties to Eric Trump and $500M transfers to Trump-linked entities amplify scrutiny amid allegations of money laundering facilitation. - Executive dismissals without misconduct claims and governance turmoil highligh

Bitget-RWA2025/11/29 00:26
SEC Investigates Crypto Company Connected to Trump for Delayed Disclosures and Management Issues

Dogecoin News Today: Dogecoin ETFs Struggle to Boost Prices, Underscoring Difficulties in the Altcoin Market

- Dogecoin ETFs (BWOW, GDOG) failed to trigger price recovery, with GDOG's $1.4M day-one volume far below $12M forecasts. - Despite institutional interest in DOGE (7th-largest crypto at $22B), indirect exposure structures lack regulatory protections and face volatility risks. - Technical analysis shows DOGE forming bullish patterns near $0.15, but ETF-driven inflows remain insufficient to break $0.155 resistance. - Altcoin ETFs face uneven reception: Solana/XRP products outperformed DOGE, highlighting chal

Bitget-RWA2025/11/29 00:26
Dogecoin News Today: Dogecoin ETFs Struggle to Boost Prices, Underscoring Difficulties in the Altcoin Market

Uruguay’s Energy Challenges Disrupt Tether’s $500 Million Cryptocurrency Investment

- Tether abruptly ended its $500M Uruguay Bitcoin mining project due to unsustainable energy costs and uncompetitive tariffs. - The project, initially promoted as eco-friendly, faced $4.8M in unpaid bills and regulatory challenges. - The exit highlights risks for crypto miners in regions with volatile energy markets and uncertain policies. - Tether remains interested in Latin American green energy projects despite the Uruguay setback.

Bitget-RWA2025/11/29 00:08
Uruguay’s Energy Challenges Disrupt Tether’s $500 Million Cryptocurrency Investment

Solana News Update: Solana Experiences Sharp Price Drop, Yet Institutional Investments Reflect Confidence in Its Future

- A $239M whale transfer on Solana by Forward Industries to Fireblocks Custody highlights institutional confidence amid SOL's 53% price drop since January 2025. - Upexi's $23M private placement and 40% stock decline underscore crypto exposure risks as institutional Solana ETF inflows hit $420M in November. - CME's Dec 15 SOL/XRP futures launch and Fidelity's staking ETFs signal growing institutional adoption despite Solana's $77.4B market cap decline. - Whale activity and ETF trends suggest strategic long-

Bitget-RWA2025/11/29 00:08
Solana News Update: Solana Experiences Sharp Price Drop, Yet Institutional Investments Reflect Confidence in Its Future