Uzbekistan Launches “Besqala Mining Valley” – Tax-Free Crypto Mining Until 2035

Uzbekistan is sending a clear signal in the Central Asian crypto race: President Shavkat Mirziyoyev signed Presidential Resolution PQ-143 on April 17, 2026, establishing the Besqala Mining Valley in the Republic of Karakalpakstan – a special economic zone dedicated exclusively to cryptocurrency mining. The resolution came into force on April 20.

What’s Behind It?

The zone is located in Karakalpakstan, the autonomous republic in the northwest of the country, and is administered by a newly created directorate under the republic’s Council of Ministers. The core promise to investors is substantial: mining companies registered in Besqala Mining Valley are fully exempt from taxes and levies on mining income until January 1, 2035 – though they must remit 1% of their monthly revenue to the state.

On the energy side, the government is also offering incentives: electricity is priced at 1,800 soums per kilowatt-hour, with preferential rates available for investment projects exceeding $100 million.

Green Mining as a Guiding Principle

The zone is not just about favorable economics – it also pursues a clear environmental agenda. Companies may use all types of renewable energy sources as well as power from hydrogen plants, a significant expansion from previous regulations that largely restricted mining to solar energy only.

Who Can Participate?

Only legal entities registered locally in Karakalpakstan are eligible for the tax benefits. Mining licenses are issued by the National Agency for Perspective Projects (NAPP). Mined cryptocurrencies may be sold on both domestic and international exchanges – however, all proceeds must be processed through Uzbek banks.

Strategic Context: Pressure Mounts on Kazakhstan

The move is geopolitically calculated. Kazakhstan – once responsible for around 13% of global Bitcoin hashrate – has tightened its power regulations, pushing miners to increasingly look elsewhere. Uzbekistan is now positioning itself as a stable, regulated alternative hub in the region. Beyond the tax exemption, the zone aims to attract investment, create jobs, and promote the use of renewable energy in the mining sector.

Conclusion

Besqala Mining Valley is more than a tax incentive – it is an industrial policy statement. Uzbekistan aims to establish itself as Central Asia’s regulated, green mining hub before global competition for favorable locations intensifies further. For Asian miners and investors, the zone should be firmly on the radar from now on.

Source:

• Bitget News – Uzbekistan Mining Valley

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