The President of Uzbekistan, Shavkat Mirziyoyev, signed a decree to establish a special zone called Besqala Mining Valley in Karakalpakstan for cryptocurrency mining. The project will cover the entire territory of the republic.
The initiative aims to develop mining based on "green" energy and attract investments to the region. Participants are allowed to use the common power grid and alternative sources, including hydrogen stations. Excess heat from the farms can be used to heat greenhouses.
Miners are permitted to sell cryptocurrency on local and foreign exchanges or through direct transactions. They can deposit their earnings into bank accounts in Uzbekistan.
Until January 1, 2035, the income of participants in Besqala Mining Valley will be tax-exempt. Instead, residents will pay a monthly fee of 1% of their revenue to the zone's administration.
The electricity tariff for miners is set at 1800 soums per kWh (double the rate for the II group of consumers). Exceptions are available for projects with investments exceeding $100 million.
Only companies registered in Karakalpakstan can become residents. Applicants must have suitable premises and functioning electrical networks. Directors and founders are prohibited from having criminal records for economic crimes.
To commence operations, a legal entity must obtain resident status and permission from the National Agency for Advanced Projects.
As a reminder, starting January 1, Uzbekistan introduced a special legal regime under which stablecoins became an official means of payment.