Uzbekistan Establishes Regulated Crypto Mining Zone With Tax Breaks

Uzbekistan’s crypto industry was previously regulated by the National Agency of Perspective Projects (NAPP), which has required licensed miners to use only solar power since 2023. The new Besqala Mining Valley in the northwestern region of Karakalpakstan is intended to attract investment through clear regulation, energy options and tax incentives while supporting local employment and industrial development.

President Shavkat Mirziyoyev signed Resolution No. PQ-143 on April 17, 2026, and it took effect on April 20. An administration under the Council of Ministers of Karakalpakstan will grant resident status in the zone. Operators may sell mined assets on domestic or overseas platforms, but the proceeds must be transferred to Uzbek bank accounts. Mining income will be tax-exempt until January 1, 2035, although operators must also pay 1% of their revenue each month.