What to know:
- Uzbekistan opens crypto mining zone with strict controls on revenue flows and banks.
- Besqala Mining Valley allows global crypto sales but requires local banking settlement.
- Tax breaks until 2035 aim to attract firms while enforcing a 1% monthly revenue fee.
Uzbekistan has opened a regulated crypto mining zone in Karakalpakstan with a presidential resolution. The framework permits licensed companies to market mined resources in overseas markets, but all the revenues must be repatriated via the banking system of the nation.
It was signed on April 17 and became effective on April 20. It creates the “Besqala Mining Valley” in the Republic of Karakalpakstan. The mining activities in this zone can be done by registered legal entities. Firms have to apply to obtain resident status in a directorate of the Council of Ministers.
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Crypto Mining Revenue and Tax Structure
The framework allows miners to sell digital assets both locally and internationally. Companies can also do direct sales contracts. Moreover, miners have an opportunity to trade assets in other liquid cryptocurrencies. The entire proceeds are to be moved to the bank accounts within Uzbekistan.
The policy brings in definite financial management of mining incomes. Regulators are interested in tracking the capital flows that are related to the transactions of digital assets. This makes sure that the earnings are kept in the formal financial system. The action is consistent with more general regulatory supervision objectives.
A key component of the framework is tax incentives. Entities that engage in mining in the zone do not pay any taxes until January 1, 2035. Nevertheless, companies will have to pay a monthly payment of 1% of the mining revenue. The money is paid to the directorate governing the zone.
The officials have also been instructed to amend the national tax code. Draft amendments should be provided within two months. Such amendments will adjust the current tax regulations to the new mining framework. The step is indicative of an integrated policy update.
The project promotes Karakalpakstan’s economic growth. In a report by the United Nations Development Programme, 2025, the levels of poverty in the region were pointed out to be high. It also reported low activity in industry. Special zones are being used to invite investment and generate new opportunities by the government.
Energy Flexibility and Foreign Investment Drive
The order replaces previous regulations regarding the mining of energy. In 2023, authorities demanded that firms only use solar power. The new policy permits a wider combination of energy sources. These are renewable energy, hydrogen, and grid electricity.
Increased tariffs are imposed in cases where crypto mining uses grid power. This situation promotes the use of alternative sources of energy. It also controls the national electricity supply pressure. The strategy is a balance between flexibility and cost.
The crypto mining area is in line with broader investment schemes in Karakalpakstan. Uzbekistan opened a tax-free artificial intelligence and data center project tax-free zone in November 2025. That program provides foreign investors with discounted electricity and tax exemption.
The foreign companies that invest more than $100 million in crypto mining are granted total tax and duty-free up to the year 2040. By 2030, the government anticipates that it will receive more than $1 billion in terms of investments. The combination of these measures is an indication of a planned method of economic growth.
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