The Legislative Landscape for Cryptocurrencies in Turkmenistan Prior to 2024

Overview

As of the end of 2022, Turkmenistan’s approach to cryptocurrency regulation remained largely undefined, with the government maintaining a neutral stance on digital currencies.

Lack of Specific Cryptocurrency Laws

Neutral Government Stance: Turkmenistan had no explicit law banning or supporting the use of cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dogecoin, Tether, Cardano, USDT, XRP, and Monero. The government neither promoted nor restricted their use, leaving the cryptocurrency market in a regulatory grey area​​.

Absence of Defined Penalties: Owing to the lack of specific cryptocurrency laws, there were no defined penalties for cryptocurrency-related offenses in Turkmenistan. However, it was important for users to be aware that cryptocurrency transactions or activities violating general financial or legal regulations could be subject to penalties​​.

General Financial Oversight: Despite the absence of dedicated cryptocurrency regulations, activities related to digital currencies were not free from legal oversight. Users and traders of cryptocurrencies were still subject to the country’s existing laws and regulations, particularly those relating to financial transactions and taxation​​.

Cryptocurrency Usage and Trading

Popularity and Trading: There was limited information on the popularity of specific cryptocurrencies in Turkmenistan. However, global trends suggested that Bitcoin, Ethereum, Litecoin, and Dogecoin were likely in use. Regarding trading, no specific laws prohibited cryptocurrency trading, but it was not officially recognized or regulated by the government, implying that traders lacked legal protections or recourse in case of disputes or issues​​.

Cryptocurrency Gambling: There was no specific legislation addressing cryptocurrency gambling. Given that all forms of gambling were illegal in Turkmenistan, it was likely that this prohibition extended to gambling using cryptocurrencies​​.

Conclusion

In summary, Turkmenistan’s legislative landscape for cryptocurrencies prior to 2024 was characterized by an absence of specific regulations, a neutral government stance, and a reliance on general financial and legal frameworks to govern cryptocurrency-related activities. The country’s approach reflected a cautious but non-restrictive attitude towards digital currencies, leaving room for potential future developments in the regulatory framework.