TurkmenistanLaw on Virtual Assets, Custody and Platform Protection Duties of Virtual Asset Service Providers
Law of Turkmenistan "On Virtual Assets" of , arts. 29, 31, 33 and 35
In force since .
A sector security regimes rule binding private bodies.
- Private right of action
- No
- Instrument type
- an act of a legislature
- Obligation class
- Security
As of .
What it requires
- This binds a virtual asset service provider licensed by the authorized body, including a crypto exchange acting as one, for virtual asset services provided on specialized platforms in Turkmenistan (reached by declaring that you are a crypto-asset provider); the Law applies from (articles 31 and 43).
- If you offer storage of virtual assets, keep your clients' funds on electronic media not connected to the Internet (cold wallets), in the manner a legal act of the authorized body sets (article 29(6)).
- If you offer custody, management and control of virtual assets, preserve the virtual assets or the instruments that control them, and move them only on the owner's instruction (article 29(5)).
- If you run a crypto exchange, protect your clients' personal information and virtual assets (article 33(3)).
- Protect your specialized platform and the personal data stored on it in accordance with Turkmenistan's legislation on information and cybersecurity (article 31(9)).
These lines are LexLint's reading of the law's text, as of .
Who enforces it
Enforcement body
The authorized body for virtual assets, which licenses virtual asset service providers and applies the prescription, fine, service limit, licence suspension and licence annulment that article 35(3) lists.
Settledness
- As of
- Open questions
- Which legal act of the authorized body sets the cold-wallet storage procedure that article 29(6) refers to, and which body is the authorized body?
- What fine amounts does Turkmenistan's legislation set for a violation of the Law, given that article 35 names the fine and article 40 refers to the liability the legislation establishes?
What this law does
Article 29(6) of the Law on Virtual Assets requires a virtual asset service provider that offers storage of virtual assets to keep its clients' funds on electronic media not connected to the Internet, called cold wallets, in the manner a legal act of the authorized body sets. Article 29(5) requires custody, management and control of virtual assets to preserve the virtual assets or the instruments that control them.
Article 33(3) requires a crypto exchange acting as a virtual asset service provider to protect its clients' personal information and virtual assets. Article 31(9) provides that the protection of the specialized platforms, and of the personal data stored on them, follows Turkmenistan's legislation on information and cybersecurity.
Article 35(3) lets the authorized body respond to a violation with a prescription, a fine, a limit on some services, suspension of the licence or annulment of the licence. Article 43 brings the Law into force on .
When LexLint raises it
When your app profile says your app is a crypto-asset provider.