Uzbekistan is launching a special crypto mining zone

Key points:

• The mining zone will be located in Karakalpakstan.
• Participants will be exempt from taxes until 2035.
• A mandatory 1% revenue fee will be introduced.

Uzbekistan is officially launching a special regime for cryptocurrency mining. The corresponding decree was signed by President Shavkat Mirziyoyev on April 17. The document establishes the Besqala Mining Valley zone, where mining companies will operate under separate rules.

The new model aims to develop the industry with a focus on alternative energy sources and attracting investment to the region. Within the zone, crypto mining will be allowed using both the centralized power grid and self-generated electricity, including green energy sources.

Terms and requirements

Companies granted resident status will be able to freely dispose of mined assets — sell, exchange, or transfer funds to local bank accounts. Until the beginning of 2035, their income will not be subject to any taxes.

Instead of regular taxes, participants will pay a fixed 1% of revenue monthly to the zone’s administration. The rest of the profit will go to the regional budget.

Electricity for mining will be charged at a special rate with a premium coefficient. Large infrastructure projects with investments of $100 million or more may receive customized conditions.

Residents will also be allowed to use excess heat generated by mining equipment for agricultural projects, such as greenhouse farming.

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Who can become a resident

Only legal entities registered in Karakalpakstan will be eligible to participate. They must have a prepared site for equipment placement, comply with safety standards, and maintain full transparency in their operations.

There are strict restrictions on ownership and management: companies linked to individuals with convictions for financial crimes will not be allowed. Any form of hidden or unauthorized mining is prohibited.

To join the zone, companies must submit an application to the managing directorate. Once approved, they will also need to obtain a separate permit for mining activities from the relevant regulator.