This study examines the legal environment on electronic transactions along with opportunities and challenges in developing electronic commerce among members of the Central Asia Regional Economic Cooperation (CAREC) Program. Digital trade promotion has been a long-standing priority for CAREC member countries, as part of their integration into global value chains and economic diversification. The study makes a case for modernization and harmonization of legislations of CAREC countries leveraging on international instruments and best practices for electronic commerce transactions. Adequate legislation to protect personal privacy and consumers and combat cybercrime is also crucial. Finally, institutions must be built with trust, within and among countries and through regional cooperation.