Uzbekistan creates tax-free crypto mining zone in Karakalpakstan until 2035

Uzbekistan has launched the Beshkala Mining Valley across the whole of Karakalpakstan as a regulated crypto mining zone tied to the region’s economic development plans. Licensed mining companies can use electricity from the national grid, renewable sources such as solar power, and hydrogen-based generation, while income from mining is exempt from taxes and mandatory payments until Jan. 1, 2035. Operators must keep proceeds from crypto asset sales in bank accounts in Uzbekistan, obtain resident status before applying for a mining license supervised by the National Agency for Perspective Projects, and pay a monthly fee equal to 1% of mining income to the zone’s directorate. The framework also allows miners to sell digital assets through domestic exchanges, foreign trading platforms, direct agreements, or by converting them into other liquid crypto assets, and permits reuse of excess heat for greenhouse farming. The new regime broadens earlier rules introduced in October 2023 that largely limited mining to solar-generated electricity, while keeping the activity restricted to legal entities.