Companies registered in the Besqala Mining Valley special zone in Karakalpakstan have received a long-term tax break. Until January 1, 2035, they can operate without paying state fees on digital asset transactions.
What happened
Amendments were made to the core regulation governing crypto asset turnover fees and payment procedures. According to reports from industry resources, the zero rate applies exclusively to residents of the Karakalpakstan economic zone.
The measure aims to support local residents, attract foreign investment, and increase the region’s overall appeal to technology businesses.
Country and market
Uzbekistan is building a strict but transparent perimeter for the digital asset market. The National Agency of Perspective Projects (NAPP) requires mandatory licensing for all service providers. Legal operations of crypto exchanges, mining pools, depositories, and crypto shops default to regular fixed payments to the state budget.
Against this backdrop, a complete fee exemption for a specific location sets a precedent. Karakalpakstan is using Besqala Mining Valley as a tool to form a local crypto hub.
Why it matters
Mining and trading digital assets require significant capital expenditures on computing equipment and energy infrastructure. A tax holiday lasting nearly ten years allows businesses to forecast project ROI more accurately and lowers the market entry barrier.
The fee exemption gives companies a margin buffer, which they will likely direct toward scaling infrastructure and integrating with local financial services.
What’s next
Future dynamics depend on the speed at which major residents enter the valley. Crypto companies need more than just mining or trading assets—they require a reliable link to the traditional financial system.
Traditional banking will have to assess compliance risks and develop products tailored to miners’ needs. The infrastructure surrounding the crypto zone will require uninterrupted cross-border payments for equipment purchases, payroll projects for local employees, and legal channels to withdraw corporate profits.