Uzbekistan has officially launched a dedicated cryptocurrency mining zone in the Republic of Karakalpakstan. According to a decree signed by the president on April 17, 2026, this policy took effect on April 20, 2026, establishing the Besqala Mining Valley aimed at attracting investment and developing digital infrastructure.
The government has set up the Besqala Mining Valley as a specialized operational area for cryptocurrency mining. Registered legal entities can apply to operate within a supervised regulatory environment.
Companies within the zone are allowed to conduct certain operations: all proceeds from cryptocurrency sales must be transferred to bank accounts within Uzbekistan to ensure transparency and control of capital flows.
The region aims to attract investment by providing favorable policies and infrastructure.
This initiative is part of a broader strategy to attract investment into Karakalpakstan, which faces economic challenges and has limited industrial development.
Previously, Uzbekistan implemented strict mining regulations. In 2023, companies were required to use only solar energy. The new framework expands energy options, allowing: high grid usage costs to encourage the adoption of alternative energy sources.
The decree also introduces tax incentives until January 1, 2035. Meanwhile, companies must pay a monthly fee equivalent to 1% of their mining revenue.
The launch of the Besqala Mining Valley could reshape the mining landscape in the region. The combination of tax incentives and clear regulations is expected to attract both local and foreign operators.
Potential outcomes include: this initiative may also intensify competition among jurisdictions offering favorable mining conditions.
The industry is shifting towards regulated mining zones.
Uzbekistan's move reflects a broader global trend of formalizing the cryptocurrency mining industry. Governments worldwide are gradually shifting from restrictions to structured integration.
The Besqala model combines: this hybrid approach may provide a template for other emerging markets. Additionally, the project highlights the increasing convergence of cryptocurrency mining, data centers, and the development of digital infrastructure.