Uzbekistan has launched a supervised crypto mining zone called Besqala Mining Valley, opening a new push to attract mining investment while keeping it under state control.
The new zone is located in Karakalpakstan and was created through a presidential resolution signed April 17.
In simple terms, Uzbekistan is saying: come mine here — but do it inside a regulated system.
Approved companies can mine crypto in the zone, sell their mined assets on domestic or foreign platforms, and even swap them into other liquid crypto assets.
But there’s a condition.
Money from those sales has to flow back into Uzbek bank accounts, keeping proceeds inside the country’s financial system.
That’s a big part of the model — encouraging foreign-facing crypto activity while keeping capital tied to the domestic economy.
The government is also offering incentives.
Mining companies operating in the zone can receive tax exemptions until 2035. In exchange, they pay a monthly fee equal to 1% of mining income to the zone administration.
That structure looks designed to attract investors while still generating state-linked revenue.
One major shift is energy policy.
Previously, Uzbekistan had required licensed miners to use only solar power.
Now the rules are broader.
Mining firms in the zone can use:
- renewable energy
- hydrogen power
- grid electricity (though at higher tariffs)
That makes the setup much more flexible and likely more attractive to industrial-scale miners.
The move also fits a bigger strategy for Karakalpakstan, a region the government has been trying to develop through technology and infrastructure investment.
Alongside the mining zone, Uzbekistan has also been pushing an AI and data center investment zone in the same region, offering tax breaks and discounted power to large investors.
So this is bigger than crypto mining alone.
It looks like an attempt to turn the region into a digital infrastructure hub.
And unlike some countries that restrict mining, Uzbekistan is trying to channel it into a controlled economic development model.
In simple terms:
- regulated mining is allowed
- tax incentives are on the table
- energy rules are more flexible
- and the state wants the economic benefits to stay local
It’s less a free-for-all mining boom, and more a government-built mining sandbox.
