Turkmenistan, one of the world’s most isolated nations, has officially legalised mining and exchanging cryptocurrency in a major shift for the country’s tightly controlled, gas-dependent economy.

President Serdar Berdimuhamedov signed the legislation on Thursday, regulating virtual assets under civil law and establishing a licensing scheme for cryptocurrency exchanges overseen by the country’s central bank.

However, digital currencies will still not be recognised as a means of payment, currency or security.

Turkmenistan, a former Soviet country in Central Asia, relies heavily on the export of its vast natural gas reserves to support its economy.

China is the country’s main importer of gas, and Turkmenistan is currently working on a pipeline to supply gas to Afghanistan, Pakistan and India.

Turkmenistan has been taking steps to digitalise government functions as well as its economy.

In April, it adopted a law introducing electronic visas aimed at simplifying entry for foreigners.

Source: Aljazeera