Turkmenistan’s New Cryptocurrency Legislation
Turkmenistan has recently enacted a comprehensive law regulating digital assets, including cryptocurrency mining and exchange operations. Signed by President Serdar Berdymukhamedov, the legislation is set to take effect on January 1, 2026. This move establishes a legal and economic framework for the creation, storage, usage, and circulation of virtual assets within the country. The government’s primary objective is to attract investment and promote digitalization efforts, aiming to diversify an economy heavily reliant on natural gas exports. By aligning with regional trends, such as Kyrgyzstan’s initiatives in the digital asset space, Turkmenistan positions itself as a potential hub for cryptocurrency activities in Central Asia.
China’s Intensified Crackdown on Virtual Currencies
On November 29, 2025, the People’s Bank of China (PBOC) reaffirmed its stringent stance against virtual currencies, emphasizing a crackdown on illegal activities, particularly those involving stablecoins. The PBOC expressed concerns over a resurgence in cryptocurrency speculation, which poses risks to financial stability. The central bank reiterated that virtual currencies are not legal tender and classified associated business activities as illegal. Additionally, the PBOC highlighted regulatory risks associated with stablecoins, citing inadequate measures for customer identification and anti-money laundering enforcement. This development underscores China’s commitment to maintaining economic and financial stability by intensifying regulatory efforts in the cryptocurrency sector.
Impact on Hong Kong’s Cryptocurrency Market
Following the PBOC’s announcement, Hong Kong-listed stocks with ties to cryptocurrency experienced significant declines. On December 1, 2025, shares of Yunfeng Financial Group dropped over 10%, marking its worst trading day in two months. Bright Smart Securities and Commodities Group fell about 7%, and the digital-asset platform OSL Group declined by more than 5%. This sell-off reflects the broader impact of China’s regulatory pressure on the cryptocurrency market, even affecting developments in Hong Kong, which has been striving to establish itself as a digital asset hub. The renewed crackdown has led major Chinese tech firms, including Ant Group and JD.com, to halt their stablecoin plans in Hong Kong, highlighting the far-reaching consequences of Beijing’s regulatory actions.
United States’ Shift in Cryptocurrency Enforcement
In a significant policy shift, the U.S. Department of Justice (DOJ) announced the disbandment of its National Cryptocurrency Enforcement Team. This move reflects a change in enforcement priorities, focusing on prosecuting individuals and groups who use digital assets for criminal activities such as terrorism, narcotics, human trafficking, gang and cartel operations, and hacking. The DOJ’s decision aligns with an executive order from President Donald Trump encouraging access to open blockchain networks. This policy marks a broader push under the current administration to ease regulations in the crypto sector, signaling a more favorable environment for cryptocurrency innovation and growth in the United States.
Indonesia’s Revised Taxation on Crypto Transactions
Starting August 1, 2025, Indonesia implemented new tax regulations increasing rates on cryptocurrency transactions. Under the new rules, sellers of crypto on domestic exchanges saw their tax rate doubled from 0.1% to 0.21%, while those using overseas exchanges faced a fivefold increase from 0.2% to 1%. However, buyers benefited from the removal of the value-added tax (VAT), which previously ranged from 0.11% to 0.22%. Additionally, the VAT on crypto mining rose from 1.1% to 2.2%. These measures reflect Indonesia’s efforts to strengthen regulation and oversight of cryptocurrencies as financial assets, responding to the rapid growth of the sector and aiming to ensure a balanced approach that fosters innovation while maintaining financial stability.
Conclusion
The global regulatory landscape for cryptocurrencies is undergoing significant transformations, with countries adopting diverse approaches to address the challenges and opportunities presented by digital assets. Turkmenistan’s proactive legislation, China’s intensified crackdown, Hong Kong’s market reactions, the United States’ policy shifts, and Indonesia’s revised taxation policies collectively illustrate the dynamic and evolving nature of cryptocurrency regulation. Stakeholders in the crypto industry must navigate these developments carefully, staying informed and adaptable to the changing regulatory environment to ensure compliance and capitalize on emerging opportunities.
