Turkmenistan legalises cryptocurrency mining and trading in major economic shift

Turkmenistan, one of the world’s most isolated nations, officially legalised mining and exchanging cryptocurrency on Thursday in a major shift for the country’s tightly controlled, gas-dependent economy.

Signed by President Serdar Berdimuhamedov, the legislation regulating virtual assets brings cryptocurrencies under civil law and establishes a licensing scheme for cryptocurrency exchanges overseen by the country’s central bank.

However, digital currencies will still not be recognised as a means of payment, currency, or security. Turkmenistan’s internet also remains tightly regulated and controlled by the government.

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Turkmenistan, a former Soviet country in Central Asia, relies heavily on the export of its vast natural gas reserves to support its economy.

China is the country’s main importer of gas, and Turkmenistan is currently working on a pipeline to supply gas to Afghanistan, Pakistan, and India.

Turkmenistan also adopted a law introducing electronic visas in April last year, aimed at simplifying entry for foreigners. After gaining independence in 1991, the autocratic nation typically placed strict entry requirements on would-be visitors, with many visa applications turned down for unclear reasons.