For the purposes of the efficient use of renewable energy sources through the attraction of investments into the Republic of Karakalpakstan, the enhancement of the welfare of the population, and the creation of favorable conditions for the conduct of mining, I hereby resolve:

1. To determine the main objectives and priority tasks of this Resolution as follows:

(a) the creation of favorable conditions for the conduct of mining activities with the use of all types of renewable energy sources;

(b) the enhancement of the investment attractiveness of the Republic of Karakalpakstan and the increase of the incomes of the population through the creation of new jobs.

2. To take note that, in accordance with the Resolution of the President of the Republic of Uzbekistan No. RP-3832 of July 3, 2018 «On measures for the development of the digital economy and the sphere of the crypto-assets turnover in the Republic of Uzbekistan», the following has been established:

(a) the turnover of crypto-assets is regulated by special legal acts;

(b) mining is carried out exclusively by legal entities with the use of electric energy produced by solar photovoltaic stations;

(c) fees are paid by legal entities for the conduct of activities in the sphere of the crypto-assets turnover.

3. To establish the special mining zone “Besqala Mining Valley” (hereinafter referred to as the special zone). It shall be established that:

(a) the territory of the special zone shall be the entire territory of the Republic of Karakalpakstan;

(b) within the framework of the special zone, the following shall be permitted:

(i) the use of the unified electric power system and of all types of renewable energy sources, as well as of electric energy produced at hydrogen power stations, for the conduct of mining;

(ii) the sale of crypto-assets obtained as a result of mining, in accordance with the established procedure, through national crypto-exchanges or foreign platforms, including on the basis of direct agreements, and (or) their exchange for other liquid crypto-assets;

(iii) the mandatory crediting of proceeds from the sale of crypto-assets obtained as a result of mining (including those exchanged for other highly liquid crypto-assets) to accounts held with banks of the Republic of Uzbekistan;

(iv) the recognition as residents exclusively of legal entities carrying out activities with the passage of state registration on the territory of the Republic of Karakalpakstan;

(v) the organization by residents of greenhouses on land plots of agricultural designation, in accordance with the established procedure, at the expense of thermal energy generated in the course of the conduct of mining.

4. To create, under the founding of the Council of Ministers of the Republic of Karakalpakstan, in the form of a limited liability company, the “Directorate of the special mining zone “Besqala Mining Valley” (hereinafter referred to as the Directorate), and to designate it as the working body of the National Agency of Perspective Projects (hereinafter referred to as the Agency) for the issuance of permits for the conduct of mining activities.

5. To establish the procedure in accordance with which, within the framework of the special zone:

(a) applicants (legal entities) shall apply to the Directorate with an application for the obtainment of residency of the special zone and of a permit for the conduct of mining activities;

(b) applications of applicants shall be considered by the Directorate, and upon the issuance of a positive opinion:

(i) the Directorate shall assign to the applicant the status of resident of the special zone (hereinafter referred to as the resident);

(ii) the Agency shall issue to the resident a permit for the conduct of mining activities without the requirement of additional documents;

(c) the Directorate shall carry out the registration of residents, shall maintain their records, and shall bear responsibility for the qualitative consideration of applications.

6. To establish that:

(a) until January 1, 2035, the incomes of residents received from operations connected with the conduct of mining activities shall be exempt from taxes and fees;

(b) for the conduct of mining activities in the special zone, residents shall, on a monthly basis, pay to the Directorate a payment in the amount of 1 per cent of the income received from the given activity, whereby the net profit of the Directorate shall be transferred to the budget of the Republic of Karakalpakstan;

(c) in the case of the use of electric energy through connection to the unified electric power system:

(i) payment for the consumed electric energy shall be effected with the application of a two-fold increasing coefficient to the second tariff group, with the exception of the cases provided for in Annex No.1 to the Decree of the President of the Republic of Uzbekistan No. DP-189 of October 22, 2025 “On additional measures for the further development of artificial intelligence technologies”;

(ii) the accounting of the consumed electric energy shall be maintained through the installation of a separate metering device;

(d) the procedure for the activities of the special zone shall be determined by the Agency.

7. The Agency, jointly with the Ministry of Economy and Finance and the Council of Ministers of the Republic of Karakalpakstan, shall, within a two-month period, submit to the Cabinet of Ministers a draft law providing for the introduction of amendments and supplements to the Tax Code arising from subparagraph “a” of paragraph 6 of this Resolution.

8. To approve the proposal of the Ministry of Energy, the Ministry of Mining Industry and Geology, and the Agency on the implementation by potential investors of projects for the production of electric energy and its use for the conduct of mining on the territory of the special zone through the further development, maintenance, and arrangement of unprofitable, low-yield, and depleting deposits, as well as of deposits with an absent or outdated transportation system for the supply of hydrocarbons.

9. The Ministry of Energy, jointly with the Agency, shall, within a two-month period, ensure the development and approval of the procedure for the provision to investors, for the purposes of the conduct of mining, of the use of unprofitable, low-yield, and depleting deposits, as well as of deposits with an absent or outdated transportation system for the supply of hydrocarbons.

10. To approve the main requirements and conditions for registration as a resident of the special mining zone “Besqala Mining Valley” in accordance with Annex No.1.

11. The Council of Ministers of the Republic of Karakalpakstan shall, within a one-month period, ensure:

(a) the creation, state registration, and allocation of premises for the placement of the Directorate;

(b) jointly with the Ministry of Energy and other ministries and departments, the submission to the Cabinet of Ministers of proposals for the introduction of a simplified procedure for the allocation of land plots for the installation of facilities of renewable energy sources for the purpose of the conduct of mining in the Republic of Karakalpakstan.

12. To introduce amendments and a supplement to certain decisions of the President of the Republic of Uzbekistan and of the Government of the Republic of Uzbekistan in accordance with Annex No.2.

13. The Agency shall, within a two-month period:

(a) develop and approve the Regulation on the special mining zone “Besqala Mining Valley” and on the procedure for the registration and the conduct of activities of its residents;

(b) jointly with the Council of Ministers of the Republic of Karakalpakstan, other ministries, and departments, submit to the Cabinet of Ministers proposals on amendments and supplements to the acts of legislation arising from this Resolution.

14. To appoint the Chairman of the Council of Ministers of the Republic of Karakalpakstan F.U. Ermanov as the responsible and personally accountable person for the effective organization of the execution of this Resolution.

15. To entrust the control over the execution of the Resolution to the Prime Minister of the Republic of Uzbekistan A.N. Aripov.

1. The legal entity must pass state registration on the territory of the Republic of Karakalpakstan.

2. The conduct of mining exclusively at the address indicated upon registration.

3. The availability of a separate premises for the installation of mining equipment.

4. The ensuring of the technical serviceability of the electric power supply system of the premises intended for the installation of mining equipment, with the observance of sanitary norms and rules, as well as the safety requirements.

5. The availability of a metering device of electric energy which has passed registration, intended for the ensuring of separate accounting of the consumed electric energy in the case of the conduct of mining with connection to the unified electric power system, and compatible with the Automated System of Control and Accounting of Electric Energy (ASCAEE).

6. The non-admission to the management of the resident of persons who are suspected of, or who have an unexpunged or unspent conviction for, the commission of economic crimes, as well as of crimes connected with the legalization of proceeds derived from criminal activity, financing of terrorism and the proliferation of weapons of mass destruction, as well as the financing thereof, organized crime, corruption, and crimes against the order of administration.

7. The non-admission to participation in the charter capital of the resident, in the capacity of owner and (or) ultimate beneficial owner, of:

(a) the persons indicated in paragraph 6 of these Requirements and conditions;

(b) companies registered in states which do not participate in international cooperation in the field of combating the legalization of proceeds derived from criminal activity, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction, as well as of persons permanently residing, located, or registered in such states.

8. The non-conduct of hidden mining, of the mining of anonymous crypto-assets, as well as of the introduction into turnover of crypto-assets that have previously been in turnover.

9. The observance of the requirements of the acts of legislation in the field of crypto-assets turnover.

10. The provision of information on activities to the authorized body in the field of crypto-assets turnover, on a gratuitous basis and upon request.

11. The timely and full payment of deductions for the conduct of activities in the special zone, established by acts of legislation.

1. In the Resolution of the President of the Republic of Uzbekistan No. RP-3832 of July 3, 2018 «On measures for the development of the digital economy and the sphere of the crypto-assets turnover in the Republic of Uzbekistan»:

(a) to exclude from the second paragraph of paragraph 1 the words “(activity for the maintenance of the distributed platform and the creation of new blocks with the possibility of receiving remuneration in the format of new units and commission sums in various crypto-assets)”;

(b) in paragraph 3:

(i) to set forth subparagraph “c” in the following edition:

“c) mining shall mean the activity for the maintenance of the distributed data ledger, the creation and the confirmation of the integrity of blocks through the conduct of computational operations.

Mining shall be carried out exclusively by a legal entity with the use of electric energy produced by a solar photovoltaic station, with the exception of mining on the territory of the special mining zone “Besqala Mining Valley”.

In the case of the use of electric energy with connection to the unified electric power system:

payment for the consumed electric energy shall be effected with the application of an increasing coefficient in the amount of 2 to the established tariff, with the exception of the cases provided for in Annex No. 1 to the Decree of the President of the Republic of Uzbekistan No. DP-189 of October 22, 2025 “On additional measures for the further development of artificial intelligence technologies”;

surcharges established by the Cabinet of Ministers shall be applied to the corresponding tariffs for the consumption of electric energy during the peak period;

the accounting of the consumed electric energy shall be maintained through the installation of a separate metering device.

Mining shall be subject to mandatory registration by the Agency and shall not be a licensed type of activity.

Persons carrying out mining (miners) shall be obliged to pass registration in accordance with the procedure established by acts of legislation.

The registration of miners shall be carried out exclusively in electronic form through the Internet.

Miners shall have the right to carry out their activities exclusively at the address indicated upon registration, with the observance of fire safety and sanitary norms and rules;”;

(ii) to set forth subparagraph “e” in the following edition:

“e) as of January 1, 2023, citizens and legal entities of the Republic of Uzbekistan may carry out operations for the purchase, sale, and (or) exchange of crypto-assets exclusively through national service providers in accordance with the established procedure, with the exception of the cases provided for by acts of legislation;”;

(iii) to set forth subparagraph “i” in the following edition:

“i) the licensing requirements and conditions for the conduct of the activities of service providers shall be:

the availability of an electronic platform and (or) a totality of technical and software means placed on servers located on the territory of the Republic of Uzbekistan;

the storage for a period of five years of information on all operations with crypto-assets, of the identification data of participants of the platform, of the materials on the relations effected by the service provider with the participants of the platform (including between the participants of the platform), including business correspondence;

сompliance with the requirements of acts of legislation of the Republic of Uzbekistan in the field of crypto-assets turnover, of combating the legalization of proceeds derived from criminal activity, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction, as well as of the storage and use of personal data;

the observance of the requirements for advertising in the field crypto-assets turnover, including the prohibition of the promise of the efficiency (profitability) of activities connected with the use of crypto-assets, of the content of information about the conduct of transactions with crypto-assets as about an easy means of enrichment, as well as about the possibility of the use of crypto-assets on the territory of the Republic of Uzbekistan as a means of payment or the acceptance of payment (with the exception of the cases established by acts of legislation);

the non-conduct of operations with anonymous crypto-assets;

the provision, on a gratuitous basis, upon the request of the authorized body, of information connected with the conduct of the activities of the platform;

the coordination with the licensing body of the sale to natural persons and legal entities, including to non-residents, of a share in the charter capital of the licensee;

the coordination with the licensing body of the change of the management (the director and his deputies), of the head of the structural subdivision for combating the legalization of proceeds derived from criminal activity, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction of the licensee;

other requirements in accordance with acts of legislation.

Additional licensing requirements and conditions for crypto-exchanges shall be:

the quotation of crypto-assets on the basis of the ratio of demand and supply therefor;

the availability of a formed charter fund in the amount of not less than five thousand base calculation values in the form of monetary means as of the date of the submission of the application, of which three thousand shall be reserved on a separate account with a commercial bank of the Republic of Uzbekistan;”;

(iv) to set forth subparagraph “m” in the following edition:

"m) for the conduct of activities in the sphere of the circulation of crypto-assets, legal entities shall pay sums. The sums shall be distributed between the State Budget of the Republic of Uzbekistan and the Agency, with the exception of the cases provided for by acts of legislation.

The amounts of the sums, the procedure for their payment and distribution shall be effected in accordance with the procedure approved by the Agency jointly with the Ministry of Economy and Finance and the Tax Committee of the Republic of Uzbekistan;”;

(c) to set forth paragraph 4 in the following edition:

“4. To grant the right:

a) to service providers:

to receive for the services rendered remuneration, including in crypto-assets, to establish the amount thereof and the procedure for its collection from clients;

to organize transactions with residents and non-residents of the Republic of Uzbekistan directed at the acquisition and (or) alienation of crypto-assets for the national and foreign currency, as well as the exchange of crypto-assets for other crypto-assets;

b) to crypto-shops, in the course of the conduct of their activities exclusively through the electronic platform, to store the means of their clients for the period established by the Agency, from the moment of the effecting of the transaction and the appearance of the corresponding record in the distributed data ledger;

c) to miners, to sell crypto-assets obtained as a result of mining, and (or) to exchange them for other crypto-assets in accordance with the established procedure through national crypto-exchanges or foreign platforms, including on the basis of direct agreements. In this connection, the exchange of crypto-assets obtained as a result of mining for other more liquid crypto-assets shall be permitted, with their subsequent sale through national crypto-exchanges or foreign platforms, including on the basis of direct agreements. The proceeds from the sale of crypto-assets obtained as a result of mining (including those exchanged for other more liquid crypto-assets) shall, on a mandatory basis, be credited to accounts with a bank of the Republic of Uzbekistan”;

(d) to supplement with paragraph 5 of the following content:

“5. To establish the procedure in accordance with which:

a) the place of the conduct of operations with crypto-assets (hereinafter referred to as the operations) shall be recognized as the Republic of Uzbekistan upon the simultaneous presence of not less than two of the following conditions:

one of the parties to the operation is a resident of the Republic of Uzbekistan (a natural person or a legal entity);

the operation has been effected on the territory of the Republic of Uzbekistan;

the operation is being carried out from an IP address registered on the territory of the Republic of Uzbekistan, and (or) with the use of a mobile telephone number having the international code of the Republic of Uzbekistan;

a bank card issued by a bank of the Republic of Uzbekistan is used for the settlements under the operation, or the processing and clearing of payments are carried out on the territory of the Republic of Uzbekistan;

the services for the conduct of operations are intended for clients residing on the territory of the Republic of Uzbekistan, in particular, are provided or advertised in the state language;

b) the following powers shall be granted to the Agency:

to conduct inspections of the activities of foreign legal entities unlawfully rendering services to residents of the Republic of Uzbekistan in the field of cryptoassets turnover (hereinafter referred to as the foreign legal entities). In this connection, the effect of acts of legislation in the sphere of state control over the activities of economic entities of the Republic of Uzbekistan shall not extend to the said inspections;

to apply against foreign legal entities penalty sanctions for the violation of legislation in the field of crypto-assets turnover. In this connection, 50 per cent of the amount of the fine shall be directed to the account of the licensing body.”;

(e) to set forth subparagraphs “a)” and “b)” of paragraph 6 in the following edition:

“a) the management of service providers by persons:

participating or suspected of participation in terrorist activity or in the proliferation of weapons of mass destruction;

suspects, having an unexpunged or unspent conviction for the commission of economic crimes, as well as of crimes connected with the legalization of proceeds derived from criminal activity, terrorism and the proliferation of weapons of mass destruction, as well as the financing thereof, organized crime, unlawful trade in narcotics, corruption, and information technologies;

permanently residing, located, or registered in states which do not participate in international cooperation in the sphere of combating the legalization of proceeds derived from criminal activity, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction;

b) participation in the charter fund of a service provider of:

the persons indicated in subparagraph “a” of this paragraph;

companies registered in states which do not participate in international cooperation in the sphere of combating the legalization of proceeds derived from criminal activity, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction;”.

2. In the Rules for the use of electric energy, approved by Annex No. 1 to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 319 of May 31, 2024 “On the approval of the rules for the use of electric energy and natural gas”, in the state language:

(a) to set forth the eighth paragraph of paragraph 2 in the following edition:

“mining — the activity for the maintenance of the distributed ledger of data, the creation and the confirmation of the integrity of blocks through the conduct of computational operations”;

(b) to set forth paragraph 80 in the following edition:

“80. Mining shall be carried out only by a legal entity with the use of electric energy produced through solar photovoltaic stations. In this connection, in the special mining zone “Besqala Mining Valley”, the use of all renewable energy sources shall be permitted.

In the event that electric energy is used for mining with connection, obtained in accordance with the established procedure, to the unified electric power system:

consumers shall pay for the consumed electric energy in accordance with a two-fold increasing coefficient relative to the second tariff group. Exceptions are provided for cases specified in Annex No. 1 to the Decree of the President of the Republic of Uzbekistan No. DP-189 of October 22, 2025 “On additional measures for the further development of artificial intelligence technologies”;

the accounting of the consumed electric energy shall be maintained through the installation of a separate metering device;

upon the identification of cases of connection to the unified electric power system of persons engaged in mining without having obtained permission in accordance with the established procedure, a five-fold increasing coefficient to the current tariff relative to the second tariff group shall be applied to them.”.