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Uzbekistan just carved out a crypto mining paradise the size of a small country. The Besqala Mining Valley, established by presidential decree, covers the entirety of Karakalpakstan, a region that makes up roughly 40% of Uzbekistan’s total land area.
President Shavkat Mirziyoyev signed Resolution No. PQ-143 on April 17, 2026, with the decree taking effect just three days later on April 20. The deal for miners is straightforward: zero taxes on corporate income, property, land, and VAT until January 1, 2035, in exchange for a 1% administrative fee on monthly revenues.
What the mining zone actually looks like
A dedicated directorate within Karakalpakstan’s Council of Ministers will oversee day-to-day operations. The National Agency for Perspective Projects, known as NAPP, serves as the permitting authority. Only locally registered legal entities can qualify as residents, meaning foreign mining firms can’t just parachute in. They’ll need to establish a local presence.
The Ministry of Justice approved detailed operational regulations on July 8-9, 2026. These rules define which energy sources miners can tap into: the national grid (at higher tariffs), renewable energy, and even hydrogen.
All mining operations must connect to the ASKUE system, which gives the state real-time visibility into energy consumption and output.
Cryptocurrency proceeds must be directed through local banks, ensuring that mining revenues flow through Uzbekistan’s financial system.
Uzbekistan’s broader crypto ambitions
Karakalpakstan is an autonomous republic in western Uzbekistan that is sparsely populated and economically underdeveloped compared to the rest of the country.
No specific mining companies have been reported as operating within the zone yet, which means the real test of Uzbekistan’s mining valley is still ahead.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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