Uzbekistan Launches Special Crypto-Mining Zone with Tax Incentives

Uzbekistan's latest move to establish a special crypto-mining zone is expected to boost the country's economy and attract foreign investment. The Besqala Mining Valley, as it is known, will be a government-backed area where registered corporations can operate mining businesses.

The new zone offers several incentives, including tax breaks that exempt companies from taxes through 2034. Companies operating in the zone must still pay a monthly fee equal to 1% of mining revenue to the entity that operates the zone. The government also plans to prepare a separate amendment to the tax code within the next two months to support the tax breaks.

The expanded power sources for mining include hydrogen and the general power grid, in addition to solar generation. However, companies that use electricity from the grid will face higher rates. Uzbekistan's move is seen as an effort to attract foreign investment to the zone, which was established in response to growing demand for cryptocurrency mining infrastructure.