Turkmenistan and Cryptocurrency

Turkmenistan Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Turkmenistan has not released any concrete information regarding its cryptocurrency currencies’ legal status. [1] Therefore, the legal status of cryptocurrency in Turkmenistan is controversial. Cointobuy’s analysis tool has ranked Turkmenistan in the position 207 out of 249 countries in terms of cryptocurrency safety, with a 1.5/10 safety rank. [2]

Also, it’s known that in Turkmenistan digital currencies can only be bought in foreign currency (U.S. dollars). Moreover, the government has been actively limiting access to foreign currency for local companies and citizens, reducing the amount of foreign currency that citizens are allowed to purchase and have deposited onto their bank cards. Thus, it makes it more difficult for people to hold digital currencies. [3]

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.  The globe below provides links to country-by-country summaries:

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Is cryptocurrency legal in Turkmenistan?

Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[1] From Kazakhstan to Uzbekistan: How Cryptocurrencies are Regulated in Central Asia, Turkmenistan, (Sep. 15, 2018). Available at https://cointelegraph.com/news/from-kazakhstan-to-uzbekistan-how-cryptocurrencies-are-regulated-in-central-asia

[2] Cryptocurrency Analysis, “Ultimate crypto investment safety rankings”, (Jun. 4, 2021).  Available at https://cointobuy.io/countries/turkmenistan

[3] Turkmenistan Bans Foreign Currency Cash Withdrawals in Sign of Cash Crunch, (Apr. 2, 2020).  Available at https://www.rferl.org/a/turkmenistan-bans-foreign-currency-cash-withdrawals-in-sign-of-cash-crunch/30525461.html

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