Uzbekistan Unveils Crypto Mining Paradise with Tax-Free Zone
Uzbekistan has created a massive crypto mining zone called the Besqala Mining Valley, covering approximately 40% of its land mass. The valley spans across the Karakalpakstan region and is expected to attract cryptocurrency miners with tax-free benefits until January 1, 2035.
The decree was signed by President Shavkat Mirziyoyev on April 17, 2026, with an administrative fee of 1% on monthly revenues. Locally registered legal entities will be eligible for the tax breaks, but foreign mining firms must establish a local presence to qualify.
The zone's operational regulations were approved by the Ministry of Justice on July 8-9, 2026. These rules dictate which energy sources miners can use: the national grid, renewable energy, or even hydrogen. Miners will need to connect to the ASKUE system for real-time monitoring and must direct their cryptocurrency proceeds through local banks.
The creation of the Besqala Mining Valley is part of Uzbekistan's broader ambitions in the crypto sector. Karakalpakstan, the region hosting the mining zone, is an autonomous republic with a sparse population and underdeveloped economy compared to the rest of the country.