Karakalpakstan establishes 'Besqala Mining Valley' crypto zone
Uzbekistan has launched a new strategic initiative to develop its crypto economy by establishing a special mining zone named "Besqala Mining Valley" across the entire Qaraqalpakhstan Republic. This zone will leverage a unified energy system, renewable sources, and hydrogen-based power generation for mining operations. Participants will be granted broad rights for crypto-asset transactions, including trading on national and international platforms, with residents enjoying a full exemption from taxes and state duties on mining income until January 1, 2035. The project aims to position Qaraqalpakhstan as a regional crypto hub, attracting investment and new technologies.
A new strategic initiative aimed at developing the crypto economy is being implemented in Uzbekistan. In accordance with Presidential Resolution No. PQ-143, a special mining zone named 'Besqala Mining Valley' has been established in the territory of the Republic of Karakalpakstan.
According to the resolution, the entire territory of Karakalpakstan will be covered as this special zone. Here, the opportunity to use a unified energy system will be created for mining activities, as well as energy generated from renewable energy sources and hydrogen-powered power plants will be utilized.
Within the framework of the new system, participants are granted the right to conduct comprehensive operations with crypto-assets. Specifically, digital assets obtained through mining can be sold on national crypto exchanges or international platforms. Simultaneously, there is an option to exchange them for other crypto-assets or realize them through direct contracts.
To effectively coordinate these processes, the Directorate of the 'Besqala Mining Valley' special mining zone will be established. The National Agency for Prospective Projects has been designated as the main working body for monitoring and regulating mining activities.
Legal entities wishing to obtain resident status will be able to apply to the special zone directorate and operate under a permit.
According to the resolution, residents of this zone will be fully exempt from all taxes and state fees on income derived from mining activities until January 1, 2035.
In short, this project is assessed as a significant step towards transforming Karakalpakstan into a regional crypto hub, increasing investment flows, and rapidly attracting new technologies.
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