Uzbekistan Launches Crypto Mining Economic Zone

Uzbekistan has established a special economic zone for cryptocurrency mining in its Karakalpakstan autonomous region, offering tax exemptions and relaxed energy regulations to attract foreign investment and boost local development. The Besqala Mining Valley, formalized by a presidential decree last month, became operational this week and aims to draw over $1 billion in investments by 2030.

The zone provides mining companies with full exemptions from corporate income taxes, property taxes, and other mandatory payments until January 1, 2035. In exchange, operators must contribute one percent of their monthly mining revenue to the government. Qualified entities can apply for residency through a dedicated directorate under the regional Council of Ministers, which oversees licensing in coordination with the National Agency for Prospective Projects. Once approved, companies gain permission to mine digital assets and sell them on both domestic and international platforms, provided all proceeds are processed through Uzbekistan's banking system. This framework allows direct cryptocurrency transactions and contracts while ensuring national oversight of financial flows.