Uzbekistan has launched a regulated cryptocurrency mining zone, the Besqala Mining Valley, under a new presidential resolution. The framework allows licensed companies to sell mined assets globally but mandates all revenue be repatriated through local banks. Firms receive a tax holiday until 2035 in exchange for a monthly 1% fee on mining revenue, as part of a strategy to attract foreign investment and stimulate economic growth in the region.
Uzbekistan has opened a regulated crypto mining zone in Karakalpakstan through a presidential resolution. The framework permits licensed companies to sell mined cryptocurrency internationally, but all proceeds must be returned to the nation’s banking system.
The resolution, signed on April 17 and effective on April 20, creates the zone called Besqala Mining Valley. Companies must first apply to obtain resident status from the directorate governing the zone.
The policy allows miners to sell digital assets both locally and internationally through direct sales contracts. Officials have stated that regulators want to track the capital flows related to these transactions to ensure earnings remain in the formal financial system.
A key incentive is that entities operating in the zone are exempt from paying taxes until January 1, 2035. However, they are required to pay a monthly fee equal to 1% of their mining revenue to the zone’s directorate.
Officials have also been instructed to amend the national tax code within two months to align with the new framework. These measures aim to attract investment and generate economic opportunities in a region where a United Nations Development Programme report highlighted high poverty levels.
The new order replaces a 2023 regulation that required firms to use only solar power. It now permits a wider energy mix, including renewable energy, hydrogen, and grid electricity, with higher tariffs imposed for grid usage.
This mining zone aligns with broader investment schemes in Karakalpakstan, including a tax-free artificial intelligence and data center project established in November 2025. That program also offers foreign investors discounted electricity and tax exemptions.
Foreign companies investing more than $100 million in crypto mining are granted full tax and duty-free status until 2040. The government anticipates attracting over $1 billion in investments by 2030 through these combined measures.
