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Ahmed Barakat
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Uzbekistan has officially It opened the door to global cryptocurrency mining operators, offering a full tax exemption for 10 years within a newly created special zone.
There is no corporate income tax, no property tax, and no land tax – which is overseen by the National Agency for Ambitious Projects (NAPP) and built on a mandatory renewable energy framework.
On April 17, 2026, effective April 20, President Shavkat Mirziyoyev signed a decree establishing the Piscala Mining Valley in the Republic of Karakalpakstan. This is not a pilot program – it is a structural restructuring of Uzbekistan as a major hashrate destination on an industrial scale.
The move comes at a time when miners are chasing jurisdictions that offer financial predictability. The question for the industry now is: Does Uzbekistan have the energy infrastructure needed to support the stimulus package, and which operators will move first?
- Tax exemption period: 10 years – Corporate income, property and land taxes are fully waived for district residents
- Area location: Piscala Mining Valley, Republic of Karakalpakstan – an area particularly targeted for economic revitalization
- Power rules: Renewable energy, hydrogen, and grid electricity (at higher tariffs) are all permitted – relaxed from the previous solar-only mandate.
- Revenue charges: Operators pay a monthly fee of 1% on mining income to the district directorate
- Banking requirements: All proceeds from sales – domestic or foreign – must pass through Uzbekistan’s banking system
- Timetable: Tax law amendments are due within two months of effective April 20; Licensing via NAPP
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What Scaffold Cryptocurrency Mining Valley actually involves, and what NAPP requires
NAPP has organized the area with clear qualification criteria. Legal entities apply for resident status, gain access to certified energy sources, and can sell assets extracted domestically or abroad.
The energy rules now accommodate renewables, hydrogen plants, and grid electricity, an intentional relaxation of the 2023 solar-only mandate that limited operator flexibility.
The 1% monthly fee on mining income is the only recurring cost above and beyond standard operating expenses.
All transaction proceeds, regardless of where they are sold, must be cleared through Uzbekistan’s banking system, a capital control mechanism that balances the region’s openness and the government’s visibility of flows.
The selection of Karakalpakstan was not random. The region experiences high poverty rates and a limited industrial base, according to the United Nations Development Program 2025 a report They are specifically marked for economic intervention.
The region borders Kazakhstan, and the government has committed to modernizing the grid targeting a capacity of 1 GW to support operations.
Officials must finalize the tax code amendments within two months of the April 20 effective date, setting a strict deadline for formalizing the framework.
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