Turkmenistan allows cryptocurrency mining and trading operations nationwide

Turkmenistan Establishes Licensing Scheme for Cryptocurrency Exchanges

President Serdar Berdimuhamedov signed legislation on Thursday establishing a licensing scheme for cryptocurrency exchanges in Turkmenistan. The country’s central bank will oversee the regulation of virtual assets under civil law.

The new regulations aim to regulate cryptocurrency exchanges, but digital currencies are not recognized as a means of payment or security. This move marks a significant shift for the country’s tightly controlled economy, which relies heavily on natural gas exports.

Turkmenistan has been taking steps to digitalize government functions and its economy. In April, it adopted a law introducing electronic visas aimed at simplifying entry for foreigners. The country declared itself officially neutral in 1995 under its first president, Saparmurat Niyazov, who maintained tight control over politics and an economy based on natural gas exports.

Since succeeding his father as president in 2022, Berdymukhamedov has signaled some opening, hinting at possible political reforms. The country’s internet remains tightly regulated, but curbs on social media have been eased, and the government has pledged to open new air transport links and liberalize its visa system.

Turkmenistan is currently working on a pipeline to supply gas to Afghanistan, Pakistan, and India. The country ranks among the worst in the world for independent media, according to the Committee to Protect Journalists. Kyrgyzstan, another former Soviet Central Asian republic, has launched a national stablecoin in partnership with cryptocurrency exchange Binance.

The new regulations are part of Turkmenistan’s efforts to modernize its economy and increase transparency. The country will now establish a licensing scheme for cryptocurrency exchanges, which will be overseen by the central bank.

Source: Al Jazeera