On 17 April 2026, President Shavkat Mirziyoyev signed a resolution establishing Besqala Mining Valley — a special cryptocurrency mining zone spanning the entire territory of the Republic of Karakalpakstan. The project is designed to attract investment, create jobs, and promote the efficient use of renewable energy.
ZONE MANAGEMENT
A dedicated Besqala Mining Valley Directorate will be established under the Council of Ministers of Karakalpakstan to oversee the project. The Directorate will grant companies resident status, while the National Agency for Prospective Projects will issue permits without requiring additional documents.
Residents will be exempt from all taxes and fees related to mining operations until 1 January 2035. Instead, they will pay a monthly fee equal to 1% of their revenue to the Directorate. The Directorate's net profit will be transferred to the budget of Karakalpakstan.
SPECIAL ZONE REGULATIONS
Mining will be permitted for legal entities using electricity from the unified grid, as well as energy generated from solar, wind, hydrogen and other renewable sources. Companies using the unified energy system must pay for electricity at an increased tariff. Unauthorized connections to the grid will result in fines.
Cryptocurrency obtained through mining must be sold or exchanged via national or international crypto exchanges, with proceeds credited to bank accounts in Uzbekistan.
RESIDENT STATUS REQUIREMENTS
Only legal entities registered in Karakalpakstan will be eligible for resident status. Mining activities will not require licensing but must be registered online. Companies must have a minimum charter capital of 5,000 base calculation units — approximately 2.06 billion soums (around $170,800) — at the time of application.
Individuals with a history or suspicion of economic crimes, money laundering, terrorism financing, corruption or organized crime will be barred from management roles. Anonymous mining, use of anonymous crypto assets and circulation of previously issued crypto assets are prohibited.
Residents will also be permitted to develop greenhouses on agricultural land, using heat generated from mining operations.
ENERGY SIGNIFICANCE
The decree is notable for directly incentivizing renewable energy use for mining: solar and wind generation allow operators to avoid the increased tariff charged for electricity drawn from the unified grid. This creates a concrete economic case for building on-site solar generation in a region that ranks among Uzbekistan's highest for solar irradiance.