Uzbekistan's Beshkala Mining Valley offers licensed crypto miners a tax exemption until 2035, national grid power, and a legal path to sell assets on foreign exchanges.
Alpha Score of 56 reflects moderate overall profile with moderate momentum, moderate value, moderate quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
Uzbekistan has carved out the entire Republic of Karakalpakstan as a special crypto mining zone, offering operators a tax exemption through 2035, access to the national power grid, and a pathway to sell digital assets on foreign exchanges.
The presidential resolution took effect April 20. It designates the region as the Beshkala Mining Valley, placing the initiative under a dedicated directorate that will process applications and oversee development. Only legal entities registered in Karakalpakstan qualify for resident status. Operators must first obtain that status through the directorate, then apply for a mining license from the National Agency for Perspective Projects, the sector regulator.
Licensed miners inside the zone can draw electricity from the unified national grid, solar installations, or hydrogen-based generation. That marks a shift from rules introduced in October 2023, which largely restricted mining to solar power. The updated framework preserves licensing requirements but gives operators more flexibility on energy sourcing.
Tax and revenue rules
Income from mining activities is exempt from taxes and mandatory payments until Jan. 1, 2035. The exemption covers 12 years and is the centerpiece of the financial incentive package.
At the same time, residents must pay a monthly fee equal to 1% of mining income to the zone’s directorate. The fee was set in a separate presidential decree signed April 17 and effective April 20.
Proceeds from crypto asset sales must be deposited in bank accounts inside Uzbekistan. Miners can sell through the country’s licensed exchanges, foreign trading platforms, direct contracts, or by swapping into other liquid crypto assets. The banking requirement is designed to keep revenue within the domestic financial system while still allowing access to global crypto markets.
Operational details
Uzbek law defines crypto mining as the computational process of maintaining distributed ledgers through block validation. The activity remains limited to legal entities; individual miners are not permitted.
Mining companies can reuse excess heat from their equipment for greenhouse farming on agricultural land, creating a secondary use for the energy produced.
Broader context
The Beshkala Mining Valley is one of several technology-focused programs Uzbekistan has launched for Karakalpakstan. In 2025 the government approved a separate tax-free zone for artificial intelligence and data center projects, offering discounted electricity and tax incentives to foreign investors. Officials said that initiative was designed to attract more than $1 billion in foreign investment by 2030.
The mining zone offers one of the clearer regulatory frameworks in Central Asia. The tax holiday runs through 2035, grid access provides cheaper power than solar-only setups, and the ability to sell on foreign platforms maintains liquidity. The 1% monthly fee and the requirement to bank proceeds locally will be recurring costs that operators need to factor into their margin math.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.