Turkmenistan has enacted a law to legalize and regulate digital asset-related activities, including issuing licenses for cryptocurrency exchanges and mining companies, according to state media reports on Friday.

President Serdar Berdymukhamedov signed the legislation, which will take effect on January 1, 2026, as reported by the Neutral Turkmenistan newspaper.

Turkmenistan, a Central Asian nation dominated by deserts, holds the world’s fourth-largest natural gas reserves. In recent years, the country has sought to diversify its economy and reduce reliance on gas exports, primarily to China.

A government spokesperson told Reuters that the law would "help attract investment and advance digitalization."

The legislation regulates the creation, storage, issuance, use, and circulation of virtual assets within Turkmenistan while clarifying their legal status and economic attributes.

Kyrgyzstan, another former Soviet republic in Central Asia, has positioned itself as a regional leader in cryptocurrency, partnering with Binance to launch a national stablecoin.