Uzbekistan Opens Tax-Free Crypto Mining Zone in Karakalpakstan

The zone, named Besqala Mining Valley, operates under a new directorate within Karakalpakstan's Council of Ministers

Crypto News

Uzbekistan has established a state-supervised crypto mining zone in the Republic of Karakalpakstan under a presidential decree signed April 17 and effective April 20, creating a framework that lets registered operators sell mined digital assets on both domestic and foreign platforms while keeping all proceeds inside the country's banking system.

The zone, named Besqala Mining Valley, operates under a new directorate within Karakalpakstan's Council of Ministers. Registered legal entities can apply for resident status through that body, access a mix of approved power sources, and sell mined

through direct contracts or via foreign exchanges. All proceeds from those sales must be transferred to bank accounts held in Uzbekistan regardless of where the transaction took place.

Operators within the zone are exempt from taxes through Jan. 1, 2035, and are required to pay a monthly fee of 1% of mining income to the zone's directorate. Officials were separately directed to submit draft amendments to Uzbekistan's tax code within two months of the decree taking effect.