Turkmenistan’s Cautious Pivot: with Iron-Fisted State Oversight

In a surprising move for one of the world’s most closed-off nations, has and trading. This change comes with heavy government control. President Serdar Berdimuhamedov signed the new law, which puts crypto under strict rules. It’s a big step for a country known for tight limits on everything from internet to travel.

What Does the New Law Say?

The law brings virtual assets into Turkmenistan’s civil laws. It sets up a licensing system for crypto exchanges. The central bank will watch over these operations closely. But cryptocurrencies won’t count as money, legal tender, or stocks in the country.

Officials say this is to control mining and trading that was already happening under the radar. Now, the state can keep a close eye on all crypto work. This fits Turkmenistan’s style of running a tight financial system.

• Licensing: Needed for exchanges and mining ops.
• Oversight: Central bank in charge.
• No legal status: Crypto isn’t official money.

Why Now? Turkmenistan’s Tough Economy

Turkmenistan sits on huge natural gas reserves. Gas exports make up most of its money. China buys the most gas from them. The government is also building a big pipeline to send gas to Afghanistan, Pakistan, and India.

But the country wants new ways to earn cash. Crypto mining could help, especially with cheap energy from gas plants. Experts think this law lets them test crypto without giving up control. It’s like other small changes, such as e-visas added last year to make travel easier for outsiders.

Since leaving the Soviet Union in 1991, Turkmenistan has kept a strong central government. Economic changes happen slowly and stay under state watch.

The Internet Challenge in Turkmenistan

Daily use of crypto by regular people will stay low. Why? The internet is slow, costly, and fully controlled by the state. Access is limited, and speeds are poor. This makes it hard for most folks to buy, sell, or mine crypto.

Miners with big setups might still come if they get licenses. Turkmenistan has extra power from its energy sector, which could draw Bitcoin miners looking for cheap electricity.

Global Crypto Shifts: Lessons for Turkmenistan

This isn’t happening in a bubble. Look at what happened elsewhere:

• China’s Ban (2021): China stopped all crypto mining and trading. Miners fled fast.
• Kazakhstan Boom: Next door, cheap power pulled in miners. But it overloaded the grid, leading to taxes and rules.
• US Leads Now: America is the top spot for Bitcoin mining thanks to money markets and energy.
• Other Spots: Russia, Canada, Iran, and some Latin American countries host miners too. Some governments like the tax money; others worry about power use and money risks.

Central Asia is hot for mining because of extra energy. Countries like Kazakhstan learned the hard way about quick growth. Turkmenistan seems smarter—they’re starting slow with licenses to avoid those problems.

What Comes Next? Open Questions

The law doesn’t say when licenses will start or how many will be given. Will local firms jump in? Or will foreign miners apply? It’s not clear yet.

For global miners, this could be a new spot. Turkmenistan has low-cost power and now legal cover. But the strict rules and bad internet might scare some away.

In the region, this could spark more crypto interest. Kazakhstan already has rules. Other neighbors might follow to grab mining cash without chaos.

Bigger Picture: Crypto in Closed Economies

Turkmenistan’s move shows a trend. Even isolated places see crypto’s pull. It offers ways to make money outside old oil and gas paths. But they all add heavy oversight to keep power in government hands.

This could help diversify Turkmenistan’s economy. More revenue means better services or infrastructure. Yet, without free internet or easy rules, growth will be slow.

Watch for first licenses. That will show if this is real change or just talk. Miners from banned spots like China might eye it. Success here could push other Central Asian states to act.

Final Thoughts: A Step Forward with Chains

under strict state oversight is a careful first step. It opens a door to digital money but keeps it locked tight. For a nation tied to gas, this could be a smart way to enter the crypto world. Time will tell if it boosts the economy or stays symbolic.

Stay tuned as more details emerge on licenses and first miners. The global crypto map is shifting, and Turkmenistan just added its pin.