- Uzbekistan is creating a state-backed cryptocurrency mining zone with tax incentives.
- Miners will be able to sell mined assets abroad, but will be required to transfer proceeds through local bank accounts.
By decree of the President of Uzbekistan created The Beskalin Mining Valley is a special mining zone in the Republic of Karakalpakstan where registered legal entities can mine cryptocurrency, utilize various energy sources, and apply for residency through a new department under the Council of Ministers of the Republic.
Miners operating in this zone will be able to sell mined assets on national exchanges or international platforms, including through direct contracts, and exchange them for other liquid cryptoassets. However, strict controls will be imposed on the movement of mining revenues through the financial system, and proceeds from such sales must be deposited into bank accounts in Uzbekistan.
Decree It also provides for a tax exemption until January 1, 2035, but miners will have to pay 1% of their mining income monthly to the zone’s directorate.
In addition, the zone will be allowed to use a wider range of energy sources, including renewables, hydrogen energy and grid electricity, with higher tariffs being charged for using grid electricity.
The creation of the preferential zone was important news for the region’s miners, especially since mining difficulty continues to rise, and at the end of March hashrate Bitcoin exceeded 1,02 Zt/s.
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