Uzbekistan Creates "Besqala Mining Valley" Special Crypto Mining Zone Covering All Of Karakalpakstan

Uzbekistan has established a dedicated cryptocurrency mining zone spanning the entire territory of Karakalpakstan, the autonomous republic in western Uzbekistan, following the signing of Presidential Decree PQ-143 by President Shavkat Mirziyoyev on April 17. The decree came into force on April 20.

Under the decree, residents operating within the Besqala Mining Valley zone will receive full tax and fee exemptions on mining income through January 1, 2035, in exchange for a 1% monthly fee payable to the zone's Directorate. Eligibility is limited to legal entities registered in Karakalpakstan.

The framework places a strong emphasis on clean energy. Mining operations are required to run on renewables by default, with solar and hydrogen among the permitted sources. Access to the national grid is allowed but comes at double the standard industrial tariff, a provision designed to steer operators toward cleaner alternatives. Stranded and depleting hydrocarbon fields may also be repurposed by operators to generate power for mining activity.

Mined cryptocurrency, including $BTC, must be sold through national crypto exchanges or authorised foreign platforms, with proceeds repatriated to Uzbek bank accounts. The decree also introduces strict compliance requirements: anonymous mining is prohibited, beneficial owners are screened against FATF non-cooperative jurisdiction lists, and mandatory criminal background checks apply to all participants.

The move positions Uzbekistan as one of the more structured regulatory environments for crypto mining in Central Asia, combining significant tax incentives with clear anti-money laundering obligations.