Uzbekistan Establishes Besqala Mining Valley with Tax Exemption Until 2035

Gate News message, April 21 — Uzbekistan’s President Shavkat Mirziyoyev has signed a decree establishing the Besqala Mining Valley, a special economic zone in the autonomous Republic of Karakalpakstan, to attract cryptocurrency miners. The zone offers income tax exemption for mining operations until January 1, 2035, along with additional incentives.

Miners in the zone will have unimpeded access to Uzbekistan’s unified power grid, which increasingly relies on renewable energy, with supplementary electricity supplied by hydrogen power plants built in Karakalpakstan. Cryptocurrency miners are authorized to sell extracted digital assets on both domestic and international trading platforms. Companies must obtain licensing from the National Agency for Prospective Projects (NAPP) and file applications with the zone’s directorate.

In February 2026, Uzbekistan issued its first mining permit to local company NexaGrid for facilities in the Bukhara region, ending months of regulatory uncertainty. The licensing followed over two years after NAPP adopted mining permit regulations, during which no legal crypto farms were registered in the country.

Uzbekistan faces increasing regional competition. Kazakhstan, once a top-three global mining destination, lost appeal after raising electricity rates for crypto farms due to energy deficits; it later eased restrictions last fall. Kyrgyzstan halted mining last winter citing power shortages but indicated resumption in spring. Turkmenistan legalized crypto mining and trading in January, while Uzbekistan announced plans to allow stablecoin use for settlements this year.