Uzbekistan is launching a special crypto mining zone in Karakalpakstan, where mining income tax will be exempt until 2035.
According to a decree from President Shavkat Mirziyoyev, the area, named “Besqala Mining Valley,” would be established across the territory of Karakalpakstan, which is an autonomous republic in northwestern Uzbekistan.
The main goal of the initiative is to attract investments, create new jobs, and promote the use of renewable energy resources in crypto mining.
The decree stipulates that mining operations in the Besqala Mining Valley may use electricity from all types of renewable energy sources. Residents may sell mined cryptocurrencies on local or foreign exchanges for cash or other tokens. However, the proceeds from such sales must be transferred to banks in Uzbekistan, the document noted.
Under the framework, only legal entities registered and operating in Karakalpakstan are eligible for the tax exemption as residents of the zone. Mining permits will be issued by the National Agency for Perspective Projects, while a dedicated directorate will manage the special zone.
Residents will be required to pay just 1% of their monthly mining income to the directorate, which is directed to the Karakalpakstan republican budget. Residents of the zone will need to comply with strict anti-money laundering and other regulations to prevent financial crimes.
This decree relaxes Uzbekistan’s previously strict regulations on crypto mining, which had limited the activity to entities using solar photovoltaic energy.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
