Uzbekistan signed a presidential resolution on April 17 to establish a special crypto mining zone in Karakalpakstan, launching a regulatory framework that allows approved mining companies to sell mined digital assets on foreign platforms while keeping the proceeds within the domestic banking system. This framework grants miners in the region the right to sell crypto assets obtained through mining on national crypto exchanges or foreign platforms, including trading through direct contracts, and they can exchange them for other liquid cryptocurrencies. However, the implementation of this policy comes with strict controls on the flow of mining revenue, with sales proceeds required to be transferred to Uzbek bank accounts.
Tax Incentives Aimed at Attracting Miners
The decree also stipulates that miners can enjoy tax reductions until January 1, 2035, while paying a monthly fee equivalent to 1% of their mining activity income to the regional administration. The resolution also requires officials to submit a draft amendment to Uzbekistan's tax law within two months.
The new decree allows for the use of various power sources within the region, including renewable energy, hydrogen, and grid electricity, while imposing higher electricity rates for grid usage.
Uzbekistan Expands Special Economic Zone Strategy to Attract Investment
Under this initiative, foreign enterprises investing $100 million or more can enjoy full tax and customs exemptions until 2040. Reports indicate that Uzbekistan expects to attract over $1 billion in foreign investment through its artificial intelligence special zone project by 2030.
