#Turkmenistan is set to legalize cryptocurrency activities starting in 2026, marking a significant reversal from its previous outright ban. However, this legalization comes with stringent, comprehensive government oversight across all operations.

Under the new framework, crypto exchanges and custody service providers must obtain licenses, adhere to strict Know Your Customer (KYC) regulations, and utilize cold storage wallets for securing client assets. Furthermore, commercial banks are prohibited from offering crypto services, and all mining operations must be fully registered. Crucially, the Central Bank is granted the authority to either approve or directly operate the underlying blockchain networks, meaning the majority of activities will be confined to state-monitored platforms.

While digital assets are now permitted, they will not be recognized as legal tender, and the state reserves complete regulatory power over all token issuance and trade. This centralized approach ensures that Turkmenistan can explore the digital asset sector while maintaining tight control over financial transparency and compliance. $BTC