Uzbekistan Unveils Massive Tax-Free Crypto Mining Zone

Uzbekistan has created a massive tax-free crypto mining zone that covers nearly half of its landmass, making it a haven for cryptocurrency miners. The Besqala Mining Valley spans the entire region of Karakalpakstan, an autonomous republic in western Uzbekistan that is sparsely populated and economically underdeveloped.

The initiative was introduced through Presidential Decree 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.

The dedicated directorate within Karakalpakstan's Council of Ministers will oversee day-to-day operations, while the National Agency for Perspective Projects serves as the permitting authority. Only locally registered legal entities can qualify as residents, meaning foreign mining firms must establish a local presence to operate in the zone.