2026-04-23 12:39:51
Uzbekistan Lures Global Crypto Mining with 10-Year Tax Holiday in New Special Zone
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Uzbekistan has officially opened the door to global Crypto mining operators, offering a full 10-year tax holiday inside a newly established special zone. No corporate income tax, no property tax, no land tax – supervised by the National Agency for Perspective Projects (NAPP) and built on a mandatory renewable energy framework. President Shavkat Mirziyoyev signed the decree on April 17, 2026, effective April 20, establishing the Besqala Mining Valley in the Republic of Karakalpakstan. This is not a pilot program – it is a structural repositioning of Uzbekistan as a primary destination for industrial-scale hash rate. The move lands at a moment when miners are actively hunting jurisdictions that offer fiscal predictability. The question the industry is now asking: does Uzbekistan have the energy infrastructure to back up the incentive package, and which operators will move first? Key Takeaways: Tax exemption period: 10 years – corporate income, property, and land taxes fully waived for zone residents Zone location: Besqala Mining Valley, Republic of Karakalpakstan – a region specifically targeted for economic revival Energy rules: Renewable energy, hydrogen, and grid electricity (at higher tariffs) all permitted – relaxed from prior solar-only mandate Revenue fee: Operators pay a monthly 1% fee on mining income to the zone directorate Banking requirement: All sales proceeds – domestic or foreign – must route through Uzbekistan’s banking system Timeline: Tax code amendments due within 2 months of April 20 activation; licensing via NAPP Discover: The best pre-launch token sales What Besqala Crypto Mining Valley Actually Includes, and What NAPP Is Requiring NAPP structured the zone with clear qualifying criteria. Legal entities apply for resident status, gain access to approved power sources, and can sell mined assets domestically or abroad. The energy rules now accommodate renewable sources, hydrogen plants, and grid electricity, a deliberate relaxation of the 2023 solar-only mandate that limited operator flexibility. The 1% monthly fee on mining income is the only recurring cost beyond standard operational expenses. All transaction proceeds, regardless of where the sale occurs, must clear through Uzbekistan’s banking system, a capital oversight mechanism that balances the zone’s openness with government visibility into flows. Karakalpakstan was not a random selection. The region carries high poverty rates and a limited industrial base, a 2025 UN Development Program report flagged it specifically for economic intervention. The zone borders Kazakhstan, and the government has committed to grid modernization targeting 1GW capacity to support operations. Officials must finalize tax code amendments within 2 months of the April 20 activation date, putting a hard deadline on framework formalization. Discover: The best crypto to diversify your portfolio with The post Uzbekistan Lures Global Crypto Mining with 10-Year Tax Holiday in New Special Zone appeared first on Cryptonews .