From underground farms to crypto-valley: why does Uzbekistan need a mining zone in Karakalpakstan

In Uzbekistan, they decided not to disperse miners, but to gather them in one legal growth point: for this, a special mining zone Bes Qala Mining Valley is being created in Karakalpakstan. The president's decree of April 17 formalizes it as a separate tool for the development of the region and at the same time - as a way to drive mining into understandable frameworks.

What zone and for whom

• Based on the Council of Ministers of Karakalpakstan, a Directorate of a special mining zone is being created in the format of an LLC. It will register residents, keep their records and act as a working body of the NAPP for issuing permits.

• Only legal entities that submit applications to the Directorate and receive a positive conclusion plus permission for mining from the Agency of Prospective Projects can become residents. That is, entry is strictly by license and by the address specified in the documents.

What conditions are given to miners

• Inside Bes Qala, residents are allowed to use both the unified energy system of the country and any renewable energy sources - solar, wind installations, as well as electricity from hydrogen power plants.

• Until January 1, 2035, income from operations related to mining in this zone is exempt from taxes and fees - in fact, long tax holidays for those who enter the project seriously and for a long time.

• The handling of crypto assets is separately stipulated: the mined coins can be sold and exchanged through permitted platforms and services within the framework of the current legislation of Uzbekistan.

Why does Uzbekistan need this

• The authorities directly link the creation of Besqala Mining Valley with tasks to attract investment in Karakalpakstan, the construction of data centers and the development of "green" energy. The zone should become a crypto hub, which will pull up infrastructure and employment in one of the most difficult regions of the country.

• At the same time, Uzbekistan has built a rather strict general regime: mining is available only to legal entities with the permission of the NAPP, with clear requirements for premises, addresses, energy sources and participant identification. The special zone in Karakalpakstan is an attempt to pack all these requirements into one site with clear bonuses for legal players.
  
  

  If you want to stay up to date with current events in the world of cryptocurrencies - visit BTCworm.net!
  We have not only fresh news, but also reliable fast exchanges with minimal commission!