Uzbekistan Unveils Regulated Crypto Mining Zone in Karakalpakstan

Uzbekistan has established a special crypto mining zone across Karakalpakstan as part of its ongoing efforts to attract investment into the region. The Beshkala Mining Valley, launched on April 20, will offer tax incentives, expanded power options, and a dedicated regulatory framework for licensed mining companies.

The initiative allows miners to use electricity from the national grid, renewable energy sources like solar power, and hydrogen-based generation. Companies participating in the program must transfer revenue from crypto asset sales to bank accounts held in Uzbekistan, keeping transactions within the country's regulated financial system.

As part of the project, mining companies will be permitted to reuse excess heat generated by their equipment for greenhouse farming on agricultural land, creating an additional use for energy produced during mining operations. The resolution exempts income earned from mining activities from taxes and mandatory payments until January 1, 2035, providing a key financial incentive for companies considering investment in the zone.