Bybit
Uzbekistan launches Besqala crypto mining zone
Uzbekistan has officially launched a special crypto mining zone in the Republic of Karakalpakstan. The presidential decree, signed on April 17 and effective April 20, 2026, introduces the Besqala Mining Valley as a regulated framework designed to attract investment and develop digital infrastructure.
В Каракалпакстане создается регулируемая зона для майнинга
The government established Besqala Mining Valley as a dedicated zone for crypto mining operations. Registered legal entities can apply for residency and operate within a supervised regulatory environment.
Companies in the zone are allowed to:
- conduct crypto mining operations
- sell mined assets on domestic and foreign platforms
- exchange digital assets for other liquid cryptocurrencies
However, all proceeds from crypto sales must be transferred to bank accounts within Uzbekistan. This ensures transparency and control over capital flows.
Регион привлекает инвестиции через льготы и инфраструктуру
The initiative is part of a broader strategy to attract investment into Karakalpakstan. The region has limited industrial development and faces economic challenges.
Previously, Uzbekistan imposed strict mining rules. In 2023, companies were required to use only solar energy. The new framework expands energy options, allowing:
- renewable energy sources
- hydrogen-based energy
- grid electricity
Higher tariffs apply to grid usage, encouraging alternative energy adoption.
The decree also introduces tax incentives until January 1, 2035. At the same time, companies must pay a monthly fee equal to 1% of mining revenue.
Mining zone may attract foreign investment to the region
The launch of Besqala Mining Valley could reshape the regional mining landscape. The combination of tax benefits and regulatory clarity is likely to attract both local and foreign operators.
Potential outcomes include:
- increased foreign direct investment
- stronger regulatory oversight of crypto flows
- accelerated infrastructure development
The initiative may also intensify competition among jurisdictions offering favorable mining conditions.
Industry shifts toward regulated mining zones
Uzbekistan’s move reflects a broader trend toward formalizing the crypto mining industry. Governments are shifting from restrictions to structured integration.
The Besqala model combines:
- investment incentives through tax exemptions
- financial control via the banking system
This hybrid approach could serve as a template for other emerging markets. Additionally, the project highlights the growing convergence between crypto mining, data centers, and digital infrastructure development.
