Beneath a presidential decision signed on April 17, Uzbekistan has created a particular cryptocurrency mining zone throughout Karakalpakstan and launched a supervised framework that permits accepted mining corporations to promote mined digital property on overseas platforms whereas conserving the proceeds inside the home banking system.
The Presidential Decree, efficient April 20, creates a particular mining zone “Beskala Mining Valley” all through the Republic of Karakalpakstan, the place registered authorized entities can perform digital forex mining, use numerous energy sources and apply for residency standing by way of the brand new Directorate Normal of the Council of Ministers of the Republic.
The framework offers miners within the zone the precise to promote crypto property acquired by way of mining on home crypto exchanges or overseas platforms, together with by way of direct contracts, and alternate them for different liquid crypto property. Nonetheless, the opening comes with strict controls over how mining proceeds go by way of the monetary system, with proceeds from its sale having to be transferred to financial institution accounts in Uzbekistan.
Tax cuts geared toward attracting miners
The Decree additionally supplies for tax exemption till January 1, 2035, whereas requiring month-to-month charges equal to 1% of revenues from mining actions to be paid to the regional directorate. The decision additionally instructs authorities to submit a draft modification to Uzbekistan’s tax legislation inside two months.
The brand new decree builds on Uzbekistan’s current use of particular zone incentives in Karakalpakstan to draw funding to a area described within the 2025 United Nations Improvement Program report as having excessive poverty charges and restricted industrial improvement.
The brand new framework additionally adjusts Uzbekistan’s earlier method to cryptocurrency mining. In 2023, the Uzbekistan Nationwide Potential Initiatives Company (NAPP) issued a decree on licensing crypto mining operations, obliging corporations to make use of solely solar energy for mining digital property.
The brand new decree will enable a wider mixture of energy sources inside the zone, together with renewable power, hydrogen and grid electrical energy, with greater tariffs relevant to grid use.
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Uzbekistan expands particular zone technique to draw funding
The transfer additionally matches into Karakalpakstan’s broader funding technique. A November 2025 Reuters report mentioned the federal government had created separate tax-free zones for synthetic intelligence and knowledge heart initiatives and supplied electrical energy reductions and tax exemptions to draw overseas buyers.
Beneath the initiative, overseas corporations investing greater than $100 million will likely be exempt from taxes and duties till 2040. In accordance with the report, Uzbekistan expects to draw greater than $1 billion in overseas funding by 2030 by way of AI particular zone initiatives.
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