Uzbekistan Unveils "Besqala Mining Valley": A New Crypto Hub with 10-Year Tax Holiday
Uzbekistan has taken a major step toward becoming a global digital asset leader by launching a specialized crypto mining zone. Located in the autonomous republic of Karakalpakstan, this initiative aims to transform the region into a high-tech industrial hub.
The 10-Year Tax Exemption
The most striking feature of the new decree, signed by President Shavkat Mirziyoyev, is the massive tax incentive. Companies operating within the Besqala Mining Valley will enjoy a complete exemption from income tax on mining activities until 2035.
Instead of traditional corporate taxes, residents will only pay a 1% monthly fee based on their total mining income. This revenue will be directed straight into the republican budget of Karakalpakstan to support local development.
Renewable Energy Integration
Unlike previous regulations that strictly limited mining to solar energy, the new framework is more flexible.
- Miners can now utilize all types of renewable energy sources.
- The project encourages the growth of green infrastructure.
- The goal is to balance high-power computing with environmental sustainability.
Operational Guidelines and Compliance
To maintain a secure financial environment, the government has established clear operational rules:
- Registration: Only legal entities registered and operating within Karakalpakstan are eligible for residency.
- Permits: The National Agency for Perspective Projects (NAPP) will oversee the issuance of all mining licenses.
- Banking: While miners can sell their tokens on global exchanges, all proceeds must be transferred to Uzbekistani banks.
- Regulation: Strict Anti-Money Laundering (AML) protocols will be enforced to prevent financial crimes.
