Uzbekistan Launches State-Supervised Crypto Mining Zone in Karakalpakstan

Uzbekistan has established a state-supervised crypto mining zone in Karakalpakstan, under a presidential decree signed on April 17. The framework allows registered operators to 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 crypto through direct contracts or via foreign exchanges.

Operators within the zone are exempt from taxes until January 1, 2035, and are required to pay a monthly fee of 1% of mining income to the zone's directorate. This move follows the same structural model as the AI zone launched in November 2025, offering long-term tax relief and zone-level administration.