Bitget App
Trade smarter
MarketsTradeFuturesEarnSquareMore
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.

You may also like

Bitcoin News Today: "ETF Outflows and Liquidity Challenges Divide Crypto Market: Leading Coins Hold Steady as Altcoins Decline"

- Bitcoin and Ethereum stabilized amid a broader crypto selloff, while altcoins like XRP and Dogecoin declined sharply due to ETF outflows and liquidity crunches. - Bitcoin fell 30% from its October peak to $87,080, underperforming equities as $3.5B in November ETF redemptions worsened market conditions. - Bitfarms plans to shift Bitcoin mining profits to AI HPC despite rising execution risks, contrasting Ethereum's DeFi-driven resilience near $3,400. - Crypto liquidity deteriorated with $4.6B stablecoin l

Bitget-RWA2025/11/28 21:38
Bitcoin News Today: "ETF Outflows and Liquidity Challenges Divide Crypto Market: Leading Coins Hold Steady as Altcoins Decline"

Third-party security incident reveals information about OpenAI API users, but does not impact core systems

- OpenAI confirmed a data breach affecting API users via third-party Mixpanel, exposing account metadata but not core systems or sensitive data. - Compromised data included email addresses, geographic locations, and internal IDs, prompting MFA alerts and vendor relationship termination. - The incident highlights third-party risks in cloud ecosystems, with OpenAI enhancing vendor security protocols and industry-wide supply chain scrutiny. - OpenAI's response includes user notifications and phishing warnings

Bitget-RWA2025/11/28 21:38
Third-party security incident reveals information about OpenAI API users, but does not impact core systems

Bitcoin News Update: Apeing’s Whitelist Strategy Offers Order Amid Meme Coin Turmoil

- Apeing ($APEING) emerges as a meme coin with a structured whitelist-driven presale, targeting 10x returns via $0.0001 to $0.001 price trajectory. - Unlike chaotic meme coins like Pepe or SPX6900, Apeing emphasizes verified early access, limited supply, and transparent tokenomics to mitigate volatility risks. - Analysts highlight its math-backed roadmap and scarcity model as advantages, though regulatory scrutiny and liquidity challenges remain potential hurdles. - The project's focus on disciplined entry

Bitget-RWA2025/11/28 21:38
Bitcoin News Update: Apeing’s Whitelist Strategy Offers Order Amid Meme Coin Turmoil