Overview
- Under a decree that took effect April 20, the new crypto mining zone in Karakalpakstan is now active with income tax relief through January 1, 2035 and a required monthly payment equal to 1% of mining revenue.
- All money from selling mined assets must be sent to accounts at banks in Uzbekistan, even when companies sell on foreign exchanges.
- A new administrative directorate reporting to the regional Council of Ministers will vet registered legal entities for residency and oversee licensing, background checks, and compliance.
- The policy drops the 2023 solar‑only rule and lets miners use renewable power, hydrogen, or grid electricity, with higher tariffs applied to grid use to manage demand.
- Officials must propose tax code changes within two months, and the zone is one piece of a plan that aims to draw more than $1 billion in foreign investment to Karakalpakstan by 2030.