- Uzbekistan is launching a special crypto mining zone in Karakalpakstan
- Mining income in the zone will be exempt from tax until 2035
- Operators will still pay 1% of monthly mining income to the government
- The country is using the zone to attract investment, jobs, and renewable energy use
New Mining Zone Offers Major Incentives
Uzbekistan is creating a special crypto mining zone called Besqala Mining Valley, located in the Karakalpakstan region. The project includes a major incentive, mining income in the zone will be exempt from tax until 2035.
This gives mining companies a long-term reason to consider setting up operations there.
Focus on Jobs, Investment, and Energy
The government says the zone is intended to attract investment, support employment, and encourage crypto mining powered by renewable energy.
Under the decree, mining operations in the zone can use electricity from renewable sources, which fits with the country’s effort to tie digital infrastructure growth to cleaner energy development.
How the System Will Work
Only legal entities registered and operating in Karakalpakstan will qualify for the tax benefits. Mining permits will be issued by the National Agency for Perspective Projects, while a dedicated local body will oversee the zone.
Operators will still be required to pay 1% of their monthly mining income to the zone’s directorate, with those funds going into the regional budget.
A Softer Approach Than Before
This marks a notable change from Uzbekistan’s earlier mining rules, which were more restrictive and largely tied mining activity to solar-based setups.
The new framework suggests the country is taking a more open and structured approach, trying to turn mining into a regulated economic activity rather than limiting it as heavily as before.
