Uzbekistan has created a particular crypto mining zone throughout Karakalpakstan beneath a presidential decision signed on April 17, opening a supervised framework that enables accredited mining firms to promote digital property mined on overseas platforms whereas conserving income throughout the nation’s banking system.
A presidential decree efficient since April 20 creates the “Besqala Mining Valley”, a particular mining zone all through the Republic of Karakalpakstan, the place registered authorized entities can perform crypto mining, use a mixture of vitality sources and apply for resident standing by means of a brand new directorate beneath the Council of Ministers of the republic.
The framework grants miners within the space the precise to promote cryptoassets obtained by means of mining on home crypto exchanges or overseas platforms, together with by means of direct contracts, and to trade them for different liquid cryptoassets. Nonetheless, the openness comes with strict controls on how mining revenues transfer by means of the monetary system, and proceeds from these gross sales should be transferred to financial institution accounts in Uzbekistan.
Tax exemptions intention to draw miners
The decree additionally gives for a tax exemption till January 1, 2035, whereas requiring them to pay a month-to-month price equal to 1% of the revenue from mining exercise to the world administration. The decision individually instructs officers to submit draft amendments to Uzbekistan’s tax code inside two months.
The brand new decree provides to Uzbekistan’s current use of particular zone incentives in Karakalpakstan to draw funding to a area {that a} 2025 United Nations Improvement Program report described as having excessive charges of poverty and restricted industrial growth.
The brand new framework additionally adjusts Uzbekistan’s earlier strategy in direction of crypto mining. In 2023, Uzbekistan’s Nationwide Company for Perspective Tasks (NAPP) issued a decree on licensing crypto mining operations, requiring firms to make use of solely photo voltaic vitality to mine digital property.
The brand new decree permits for a broader mixture of vitality sources throughout the zone, together with renewables, hydrogen and grid electrical energy, and better tariffs apply for grid use.
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Uzbekistan expands particular zones technique to draw investments
The transfer additionally matches right into a broader funding technique in Karakalpakstan. In keeping with a Reuters report in November 2025, the federal government had established a separate tax-free zone for information heart and synthetic intelligence tasks, providing discounted electrical energy and tax exemptions to draw overseas buyers.
Below the initiative, overseas firms investing $100 million or extra get full exemptions from taxes and duties till 2040. In keeping with the report, Uzbekistan hopes to draw greater than $1 billion in overseas funding by 2030 due to the AI particular zone mission.
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