Uzbekistan launches state-backed crypto mining zone in Karakalpakstan, offering tax breaks and enabling foreign sales under strict financial oversight

Karakalpakstan is where Uzbekistan pilots policy it can't push through Tashkent — foreign-sales-only mining is capital control dressed as compliance, not crypto adoption. The state captures FX from hashrate revenue while citizens stay locked out of onramps. Kazakhstan ran this exact playbook in 2021, hit 18% of global hashrate, then watched its grid collapse and political unrest follow within six months.

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