Karakalpakstan to Become a Miner's Paradise with Tax Holidays Until 2035
Technology
Uzbekistan is taking a decisive step toward a digital economy: President Shavkat Mirziyoyev has signed a landmark decree establishing a special crypto-mining zone in Karakalpakstan—Besqala Mining Valley. Residents of the zone will enjoy unprecedented benefits, including full tax exemption for the next decade.
The new crypto-zone encompasses the entire territory of the Republic of Karakalpakstan. The project’s primary objective is to attract investment to the region and stimulate the development of renewable energy sources. The government has authorized miners to use not only the general power grid but also "green" generation, including hydrogen power. Furthermore, the thermal energy generated by mining farms is intended to heat greenhouses on agricultural lands, creating a unique synergy between the IT and agricultural sectors.
Key Terms and Preferences:
Tax Haven: Until January 1, 2035, residents' income is completely exempt from taxes. Instead, they will pay a monthly fee of 1% of their income to the zone's directorate.
Energy Tariffs: The cost of electricity is set at 1,800 UZS per kWh (a double coefficient). However, special conditions are provided for major infrastructure projects valued at over $100 million.
Freedom of Operations: Mined assets can be freely sold or exchanged on national and international platforms, and proceeds can be deposited into Uzbekistani bank accounts.
Only legal entities registered in Karakalpakstan are eligible to become residents of the valley. They must meet rigorous security requirements, including technically sound power systems, no criminal records for management or founders, and a strict ban on hidden or anonymous mining. This project is set to become a powerful driver for the region's development, transforming it into one of the most attractive hubs on the global crypto-industry map.
Key Terms and Preferences:
Tax Haven: Until January 1, 2035, residents' income is completely exempt from taxes. Instead, they will pay a monthly fee of 1% of their income to the zone's directorate.
Energy Tariffs: The cost of electricity is set at 1,800 UZS per kWh (a double coefficient). However, special conditions are provided for major infrastructure projects valued at over $100 million.
Freedom of Operations: Mined assets can be freely sold or exchanged on national and international platforms, and proceeds can be deposited into Uzbekistani bank accounts.
Only legal entities registered in Karakalpakstan are eligible to become residents of the valley. They must meet rigorous security requirements, including technically sound power systems, no criminal records for management or founders, and a strict ban on hidden or anonymous mining. This project is set to become a powerful driver for the region's development, transforming it into one of the most attractive hubs on the global crypto-industry map.
Powered by Froala Editor