Uzbekistan Approves Rules for Karakalpakstan Crypto Mining Hub
The Ministry of Justice has established the operational and registration procedures for the Besqala Mining Valley, a dedicated cryptocurrency mining hub in the autonomous republic of Karakalpakstan.
Under the newly approved framework, resident status is exclusively available to legal entities registered and operating within the region. The Besqala Mining Valley Directorate will process applications free of charge and must issue a decision within 30 days of submission.
While the directorate manages the zone and accepts initial applications, the National Agency of Perspective Projects retains the authority to issue the final mining permits.
Authorised residents are permitted to draw power directly from the unified national grid to fuel their operations. To account for the sector’s intensive energy demands, these companies will be charged a double tariff for electricity.
Once operational, businesses can sell their generated crypto assets through domestic Uzbek exchanges and international trading platforms. The regulations also allow companies to swap their mined cryptocurrency for other digital assets.
President Shavkat Mirziyoyev signed the decree to create the Karakalpakstan mining zone earlier this spring. To attract investment to the hub, the government introduced substantial financial incentives, exempting all corporate income derived from cryptocurrency mining from taxes and other mandatory payments until 1 Jan. 2035.
