Special mining zone to be established in Karakalpakstan

A special cryptocurrency mining zone, “Besqala Mining Valley,” will be established in Karakalpakstan, according to a presidential resolution adopted on April 17.

Under the resolution, the zone will cover the entire territory of Karakalpakstan.

Within the special zone, the following activities will be permitted:

•  the use of electricity from the unified power grid, as well as all types of renewable energy sources and hydrogen power plants for mining operations;
•  the sale of crypto assets obtained through mining via national crypto exchanges or foreign platforms, including through direct contracts, and/or their exchange for other liquid crypto assets.

A dedicated дирекция for the “Besqala Mining Valley” special mining zone will also be established. The National Agency for Perspective Projects has been designated as the authorized body for issuing permits for mining activities.

Applicants (legal entities) must apply to the дирекция to obtain resident status in the special zone and receive permission to carry out mining activities.

Until January 1, 2035, income derived from mining operations by zone residents will be exempt from taxes and mandatory payments.

Earlier, it was reported that Uzbekistan may allow the use of crypto assets as a means of payment.