Special Mining Zone to be Established in Karakalpakstan
A significant step has been taken in Uzbekistan to elevate the digital economy to a new level and regulate the crypto-asset sector. This was reported by Zamin.uz.
According to the relevant decree of the Head of State, a special mining zone named 'Besqala Mining Valley' is being established in the Republic of Karakalpakstan. This initiative aims to support high-tech entrepreneurship in the country and increase the investment attractiveness of the region.
Under the new regulations, this special zone will encompass the entire territory of Karakalpakstan. Entrepreneurs operating here will be granted access to the unified energy system.
At the same time, to attract modern and eco-friendly technologies to the sector, special attention will be paid to utilizing power from renewable energy sources and hydrogen-based power plants. This will contribute to the sustainable development of the industry.
Within the framework of the project, participants are granted the right to perform a wide range of operations related to crypto-assets. Digital assets obtained through mining can be sold on national crypto-exchanges or international platforms, exchanged for other types of assets, or sold based on direct contracts.
A special directorate will be established for effective process management, while oversight and regulation will be carried out by the National Agency of Perspective Projects. The most notable aspect is the introduction of unprecedented incentives for the residents of this zone.
Specifically, until January 1, 2035, the income of entrepreneurs operating in this region from mining activities will be fully exempt from all types of taxes and state fees. Such a favorable business environment will lay the foundation for transforming Karakalpakstan into a major regional hub for digital technologies and further actively attracting foreign investment into the economy.
