Uzbekistan Launches State-Endorsed Crypto Mining Zone with Tax Perks
Key Takeaways:
- Uzbekistan has initiated a regulated crypto mining zone in Karakalpakstan, effective April 20.
- Companies gain tax exemptions until 2035 while adhering to revenue channeling rules through Uzbekistan’s banking system.
- The zone permits a diverse range of power sources, shifting from an exclusive solar power requirement.
- A wider economic strategy is in place, including a tax-free zone for AI and data center projects planned for 2025.
- The strategy seeks to attract over $1 billion in foreign investments by 2030.
WEEX Crypto News, 2026-04-22 12:16:04
Uzbekistan’s New Crypto Mining Zone: A Strategic Boost
Uzbekistan has taken a bold step to spearhead crypto mining development by creating the “Besqala Mining Valley” in the Republic of Karakalpakstan. This move, under a presidential decree effective from April 20, allows approved entities to mine and sell digital assets, enhancing Uzbekistan’s burgeoning crypto landscape. By containing profits within the country’s banking system, the framework supports both local financial stability and investors’ interests.
Operating Regulations and Benefits
Registered legal entities can apply for resident status, allowing them to mine digital currencies in designated areas. Companies can then list these assets on both local exchanges and international platforms, facilitating global engagement. However, strict controls over revenue movement dictate that companies must deposit proceeds from crypto sales into local banks, thereby reinforcing domestic financial systems. Tax exemptions available until January 1, 2035, enhance the appeal, requiring only a 1% monthly fee of mining income to the zone’s administration.
Power Source Expansion Beyond Solar Mandate
Significantly, the latest decree now allows miners to utilize a broader array of power sources, moving beyond Uzbekistan’s prior solar-only requirement enacted in 2023. Companies can now leverage renewable energy, hydrogen, and grid electricity, albeit at higher costs for the latter. This adaptability aims to reduce operational restrictions and attract diverse investors.
Broad Economic Strategy in Karakalpakstan
This initiative forms part of a wider strategic plan by Uzbekistan to rejuvenate Karakalpakstan’s economy, which has long struggled with poverty and stunted industrial growth. The government intends to foster a separate tax-free zone for artificial intelligence and data projects by 2025, offering enormous potential for economic stimulation. With projections of over $1 billion in foreign investment by 2030, including full tax and duty exemptions for firms investing above $100 million, Uzbekistan clearly signifies its ambition to become a techno-economic hub.
FAQ Section
What are the benefits for crypto mining companies operating in Uzbekistan’s new zone?
Companies receive tax exemptions until 2035 and have access to diverse global platforms for asset sales. However, they must repatriate revenue through Uzbekistan’s financial system and pay a 1% income fee.
What power sources are permitted under the new decree for crypto mining?
The recent decree extends beyond solar-only requirements to include renewable energy, hydrogen power, and grid electricity, with the latter subject to higher tariffs.
How might the mining zone impact Karakalpakstan’s economy?
Targeted investments and development initiatives aim to reduce poverty and boost industrial growth in the region, in alignment with additional tech-focused projects planned for 2025.
Is foreign investment likely in Uzbekistan’s new initiatives?
Yes, Uzbekistan plans to attract over $1 billion in foreign investment by 2030, offering significant tax incentives to investors contributing at least $100 million.
What is Uzbekistan’s broader economic strategy with the newly established zones?
Uzbekistan is enhancing Karakalpakstan’s economic framework with plans for a tax-free AI zone complementing the crypto focus, aiming to position itself as a technological and industrial powerhouse in Central Asia.
By strategically aligning regulation, technology, and economic incentives, Uzbekistan’s bold moves in crypto mining aim not only to advance technological growth but also to address social and economic challenges in neglected regions.
You may also like

Morning Report | BitMine increased its holdings by 126,971 ETH last week; trader Eugene announced his exit from the crypto market

Wang Chuan: How can one not feel anxious after the neighbor Old Wang made thirty times profit by investing in storage stocks? (Seven) - A quarter-century cycle

Cryptocurrency CEXs are flocking to sell US stocks, and traditional brokerages are facing an "uninvited guest."

$75 billion in foreign capital has fled, and South Korean retail investors have absorbed it all using leverage

Japan’s Three Megabanks Plan Joint Stablecoin Issuance in Fiscal 2026
MUFG, SMBC, and Mizuho reportedly plan to jointly issue fiat-pegged stablecoins in fiscal 2026, signaling Japan’s growing push into bank-led digital payment infrastructure.

Humanity Discloses H Token Dual-Chain Attack Details, With Losses on Ethereum and BSC Exceeding $36 Million
Humanity said the H token attack across Ethereum and BSC caused more than $36 million in losses after leaked ProxyAdmin keys enabled malicious contract upgrades and token minting.

White House Discusses CLARITY Act With Law Enforcement Ahead of Senate Vote
The White House discussed the CLARITY Act with law enforcement ahead of a Senate vote, focusing on illicit finance risks and developer protections.

Bitcoin Trading Guide 2026: Strategies for Experienced Traders

What Is XAUT and PAXG? Why Tokenized Gold Is Booming in 2026

Will the SpaceX IPO Hurt Bitcoin? Here's What Traders Are Watching

Foreign selling in the South Korean stock market accelerates, with cumulative net sales reportedly reaching $75 billion this year
On June 9, The Kobeissi Letter, citing Goldman Sachs data, reported that global investors are selling South Korean stocks at an unusually rapid pace. In the latest trading session, foreign investors sold about $801 million worth of Kospi constituent stocks again; total foreign outflows last week reached about $10 billion, and the market has been in net foreign selling on nearly every trading day over the past month. According to the data cited in the report, foreign investors have sold about $75 billion worth of South Korean stocks so far this year. Meanwhile, South Korean retail and institutional investors together recorded roughly $69 billion in net buying over the same period, suggesting that the market’s main buying support has come from domestic capital rather than returning overseas funds. The information currently disclosed still mainly comes from The Kobeissi Letter’s retelling and Goldman Sachs data summaries, while public details on the statistical period and the specific definition of “selling” remain relatively limited.

Fortune Warns of Strategy’s Financing Structure Risks as Bitcoin Premium Narrows
Fortune warned that Strategy’s Bitcoin treasury model faces growing financing risks as MSTR’s net asset premium narrows and preferred stock dividend pressure increases.

Ferrari Challenge Le Mans: Carl Moon to Dominate in WEEX Livery

Sahara AI Responds to SAHARA’s Sharp Drop: No Contract or Product Security Issues Found, Internal Investigation Underway
Sahara AI responded to SAHARA’s 60% price drop, saying no token contract or product security issues have been found and an internal investigation is underway.

WEEX Deposit/Withdrawal Dynamic Island: Your Asset Status, Always in Sight

Scaling Crypto Derivatives: The Digital Asset Infrastructure Behind High-Volume Trading
In the fast-moving digital asset ecosystem, derivatives platforms face an extreme architectural test. High-leverage futures markets demand more than just standard security—they require absolute operational precision, zero-latency matching engines, and ironclad structural scalability, all while navigating intense market volatility.
As global platforms scale to meet these demands, the industry is shifting away from rigid, monolithic setups toward a more agile, "decoupled" infrastructure philosophy.
The Blueprint for High-Volume Copy TradingFor elite global exchanges like WEEX (founded in 2018), this architectural choice becomes critical when scaling high-volume retail features like social copy trading. When thousands of users automatically mirror the real-time strategies of elite traders simultaneously, it triggers sudden, monumental spikes in concurrent transactional volume.
To prevent execution latency or settlement bottlenecks during these peak volatility events, a platform's primary engine must remain entirely dedicated to risk management, copy-trade synchronization, and order matching.
The Architectural Rule: New-generation platforms must separate front-end user execution engines from heavy backend infrastructural overhead to eliminate operational friction.
By separating these layers, platforms can maintain complete sovereignty over their trading environments and user experiences while strategically aligning with institutional-grade infrastructure ecosystems. This strategic framework allows modern exchanges to leverage advanced Digital Asset Custody infrastructure such as Cobo’s behind the scenes, ensuring that backend wallet management scales elastically alongside trading spikes.
Capitalizing on Market Momentum and 400× LeverageIn a derivatives arena where platforms offer up to 400× leverage on perpetual contracts, capital efficiency and market agility are core business metrics. To capture market momentum, an exchange needs the ability to rapidly expand its asset offerings, supporting everything from legacy crypto assets to sudden, trending altcoins across a massive library of trading pairs.
Adopting a flexible, scalable Wallet-as-a-Service (WaaS) solution such as Cobo’s could completely rewrite the development timeline for high-growth exchanges. Instead of spending months of engineering capital building out custom backend wallet architectures for every new blockchain network, platforms can deploy localized infrastructure in days.
This agility allows platforms to instantly scale their listings to over a thousand trading pairs without compromising security or delaying time-to-market. It mirrors the exact operational advantages seen during high-velocity market events, similar to how advanced wallet infrastructure empowers platforms during sudden asset surges; allowing exchanges to pass that speed and liquidity directly to their global user base.
A Mature Foundation for GrowthThe synergy between trusted infrastructure ecosystems and global trading platforms represents the natural evolution of a maturing crypto market. As WEEX continues to scale its global spot and derivatives offerings for over 6 million users, adopting robust backend paradigms proves that platforms no longer have to compromise between cutting-edge trading velocity and uncompromised structural security.

Get Paid to Onboard? Try WEEX’s New Homepage with Rewards for Registration, Deposit & Trade

WEEX Custom Layout: Build Your Perfect Trading Workspace in Seconds
Morning Report | BitMine increased its holdings by 126,971 ETH last week; trader Eugene announced his exit from the crypto market
Wang Chuan: How can one not feel anxious after the neighbor Old Wang made thirty times profit by investing in storage stocks? (Seven) - A quarter-century cycle
Cryptocurrency CEXs are flocking to sell US stocks, and traditional brokerages are facing an "uninvited guest."
$75 billion in foreign capital has fled, and South Korean retail investors have absorbed it all using leverage
Japan’s Three Megabanks Plan Joint Stablecoin Issuance in Fiscal 2026
MUFG, SMBC, and Mizuho reportedly plan to jointly issue fiat-pegged stablecoins in fiscal 2026, signaling Japan’s growing push into bank-led digital payment infrastructure.
Humanity Discloses H Token Dual-Chain Attack Details, With Losses on Ethereum and BSC Exceeding $36 Million
Humanity said the H token attack across Ethereum and BSC caused more than $36 million in losses after leaked ProxyAdmin keys enabled malicious contract upgrades and token minting.





