Uzbekistan has actually produced an unique crypto mining zone throughout Karakalpakstan under a governmental resolution signed on Friday, opening a monitored structure that lets authorized mining business offer mined digital possessions on foreign platforms while keeping the profits inside the nation’s banking system.
A governmental decree efficient Monday develops the “Besqala Mining Valley,” an unique mining zone throughout the Republic of Karakalpakstan, where signed up legal entities can perform crypto mining, utilize a mix of source of power and make an application for resident status through a brand-new directorate under the republic’s Council of Ministers.
The structure offers miners in the zone the right to offer crypto possessions acquired through mining on nationwide crypto exchanges or foreign platforms, consisting of through direct agreements, and to exchange them for other liquid crypto possessions. Still, the opening features stringent controls over how mining earnings move through the monetary system, and follows those sales need to be moved to savings account in Uzbekistan.
Tax breaks intend to draw miners
The decree likewise offers a tax exemption through Jan. 1, 2035, while needing them to pay a regular monthly cost equivalent to 1% of earnings from mining activity to the zone’s directorate. The resolution individually advises authorities to send draft changes to Uzbekistan’s tax code within 2 months.
The brand-new decree contributes to Uzbekistan’s current usage of special-zone rewards in Karakalpakstan to draw in financial investment into an area that a 2025 United Nations Advancement Program report referred to as having high hardship rates and minimal commercial advancement.
The brand-new structure likewise changes Uzbekistan’s earlier technique to crypto mining. In 2023, Uzbekistan’s National Firm for Point Of View Projects (NAPP) released a decree on licensing crypto mining operations, needing companies to just utilize solar energy to mine digital possessions.
The brand-new decree permits a larger mix of source of power within the zone, consisting of eco-friendly, hydrogen and grid electrical power, with greater tariffs made an application for grid use.
Related: Uzbekistan increases charges for crypto operations
Uzbekistan broadens special-zone method to draw financial investment
The relocation likewise fits a more comprehensive financial investment method in Karakalpakstan. According to a Reuters report in November 2025, the federal government had actually developed a different tax-free zone for expert system and information center jobs, using reduced electrical power and tax exemptions to draw foreign financiers.
Under the effort, foreign companies investing $100 million or more get complete tax and task exemptions up until 2040. According to the report, Uzbekistan anticipates to draw in over $1 billion in foreign financial investment by 2030 from the AI unique zone job.
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