Uzbekistan recently announced the establishment of a crypto mining zone within its borders, offering tax exemptions for participants until 2035. Firstly, companies must register as legal entities and obtain resident status in the area to commence operations. A dedicated authority under the regional ministerial council will oversee approvals, compliance, and activity monitoring. Additionally, the new framework expands energy options for mining companies, allowing the use of renewable energy, hydrogen, and grid electricity, whereas previous regulations mandated 100% use of solar energy. However, using grid electricity will incur higher rates to address energy demand issues.
The decree provides tax exemptions throughout 2023 and until 2035, creating long-term incentives for both domestic and foreign investors. Meanwhile, operators are required to pay a monthly fee equivalent to 1% of their mining revenue to the authority. In addition to these incentives, authorities plan to revise national tax laws within two months to align current fiscal strategies with the new mining framework.
It is noteworthy that the project aims to promote economic development in Karakalpakstan, a region facing structural challenges. A 2025 report from the United Nations Development Programme highlighted the high poverty rate and limited industrial activity in the area. Consequently, Uzbekistan is expanding special economic zones to attract large investments. Previous initiatives included tax reductions and electricity price incentives for artificial intelligence and data center zones.
Moreover, miners can access global liquidity through foreign platforms while remaining under national regulation. This approach strikes a balance between market flexibility and regulatory control. Overall, Uzbekistan's mining zone combines tax incentives until 2035 with a 1% revenue fee, aiming to attract investment while maintaining financial discipline.