Uzbekistan to Establish Besqala Mining Valley Crypto Zone

• Uzbekistan’s President signed Resolution PQ-143 to create the Besqala Mining Valley in Karakalpakstan.
• The zone builds on existing crypto laws, such as PQ-3832 from 2018, to promote renewable-powered mining.
• Under the plan, residents in the zone will receive full tax exemptions on mining income until January 1, 2035.

On April 17, 2026, Uzbekistan President Shavkat Mirziyoyev signed Presidential Resolution PQ-143 to establish the Besqala Mining Valley, a special cryptocurrency mining zone covering the entire Republic of Karakalpakstan. The initiative aims to create favorable conditions for green energy-powered mining, attract investment, create jobs, and improve local welfare, while enforcing strict registration and compliance requirements.

Uzbekistan To Establish Besqala Mining Valley in Karakalpakstan

On April 17, 2026, Uzbekistan’s President signed Presidential Resolution PQ-143 to establish Besqala Mining Valley in Karakalpakstan as a special economic zone dedicated to cryptocurrency mining, with the resolution entering into force on April 20. Only legal entities registered in the region can become residents and conduct mining exclusively at their registered address. 

Meanwhile, residents may use electricity from the unified electric power system and all types of renewable energy sources, including hydrogen power stations, to power their operations. They can sell or exchange mined crypto-assets on national or foreign platforms and must transfer all proceeds to bank accounts in Uzbekistan.

Furthermore, the government has established a dedicated Directorate under the Council of Ministers of Karakalpakstan to manage residency applications and operations. Residents must comply with sanitary standards, technical safety, and fire safety regulations, and install separate electricity metering systems. They will pay a monthly fee of 1% of mining income to the Directorate. 

How the Zone Builds on Existing Crypto Laws

Resolution PQ-143 directly builds on Presidential Resolution PQ-3832 from July 3, 2018, which first introduced measures for digital economy development and crypto-asset circulation in Uzbekistan. The new resolution amends PQ-3832 by refining the definition of mining as the performance of computational operations to maintain a distributed ledger, create, and confirm block integrity. 

Moreover, it complements recent digital asset reforms, including the special legal regime that recognizes stablecoins as legitimate payment instruments effective January 1, 2026, under a supervised sandbox managed by the National Agency of Perspective Projects and the Central Bank.

The zone also expands energy rules to include all renewables and hydrogen, beyond prior solar limits, while requiring grid users to connect to the accounting system and pay double tariffs. These changes channel investment into renewable-powered mining while maintaining robust oversight through electronic registration and mandatory reporting.

Broader Impact on Uzbekistan’s Digital Asset Ecosystem

The Besqala Mining Valley will strengthen Uzbekistan’s regulated crypto framework in Central Asia by offering long-term tax incentives alongside mandatory use of renewable energy and strict compliance standards. Miners in the zone will receive full tax exemptions until January 1, 2035, access to renewable and hydrogen energy systems, and permission to trade produced crypto assets on local and international platforms.

Further developments in Uzbekistan’s crypto sector could include regulatory refinement by the Directorate and the national Agency, alongside increased foreign investment in renewable energy infrastructure. The Besqala Mining Valley may also integrate mining waste heat into greenhouses and agricultural projects. 

Therefore, this move aligns with Uzbekistan’s strict crypto regulations, which limit mining and trading to licensed legal entities while banning P2P transactions, with the aim of attracting green energy investment near Kazakhstan’s mining hub. The zone could position Karakalpakstan as a potential model for sustainable blockchain development, provided operators comply with registration, reporting, and safety requirements.

Related: Turkmenistan Legalizes Crypto Mining but Bans Use for Payments