Uzbekistan Establishes Special Economic Zone for Cryptocurrency Miners

The government of Uzbekistan has created a favorable environment for cryptocurrency miners by establishing a special economic zone called the Besqala Mining Valley in the autonomous Republic of Karakalpakstan. The region, which borders Kazakhstan, will offer tax exemptions and other benefits to mining enterprises based there.

The tax exemption will be in place until January 1, 2035, and miners will also have access to Uzbekistan's unified power grid, which relies increasingly on renewable energy resources. The rest of the needed electricity for the mining equipment will be supplied by hydrogen power plants built in Karakalpakstan itself.

The establishment of the special economic zone is part of Uzbekistan's efforts to create favorable conditions for the crypto mining sector. In February this year, the nation issued its first mining permit, joining a club of former Soviet Republics in Central Asia where the industry has been gaining a foothold.