Uzbekistan has officially launched "Besqala Mining Valley" in Karakalpakstan, a special zone for regulated cryptocurrency mining. A new presidential decree grants income tax exemptions on mining operations until January 1, 2035, aiming to attract foreign investment and expand renewable energy use.
Mining activities are restricted to registered legal entities and are primarily intended to leverage solar power. Licensing and supervision will be managed by state agencies, with companies authorized to mine, trade, and convert crypto assets, provided all transactions occur through domestic banks.
While income is tax-free until 2035, operators will pay a monthly fee based on revenue and higher electricity tariffs for grid usage. Strict background checks and financial transparency laws are in place to prevent illegal activities.
This initiative marks a shift from Uzbekistan's previous cautious approach, which included higher electricity rates for grid-connected miners. The new policy offers a 15% electricity discount for registered miners and data centers, alongside the establishment of this dedicated mining zone.