Uzbekistan to Launch Tax-Free Besqala Mining Valley in Karakalpakstan
Uzbekistan is preparing to establish a specialised cryptocurrency mining hub known as the Besqala Mining Valley.
According to the Ministry of Justice, the creation of this dedicated zone in the Republic of Karakalpakstan has been officially authorised by a decree from President Shavkat Mirziyoyev.
A defining feature of the new initiative is its flexible approach to power consumption. Miners operating within the valley will be permitted to draw electricity from the unified national grid alongside alternative power sources. Notably, this includes provisions for the use of hydrogen power stations to fuel energy-intensive mining operations.
Businesses granted residency in the zone will enjoy significant commercial freedom. They will be authorised to sell their generated crypto assets through domestic exchanges or international trading platforms. Furthermore, the regulatory framework will allow these companies to swap cryptocurrencies for other digital assets and conduct a variety of related financial transactions.
To oversee the development and daily operations of the project, a dedicated Besqala Mining Valley Directorate will be established. Companies hoping to set up operations will need to submit their applications for residency and mining rights directly to this new administrative body. However, the final authority for issuing official mining permits will remain with the National Agency for Prospective Projects (NAPP).
In a major bid to attract domestic and international investment, the government is offering substantial financial incentives to early adopters. Registered participants operating within the special economic zone will be completely exempt from all taxes, fees and state levies on their mining income until January 1, 2035.
