Uzbekistan Launches 10-Year Tax-Free BTC Mining Zone

Uzbekistan has formally launched the Besqala Mining Valley in the Republic of Karakalpakstan, offering global crypto miners a full 10-year tax holiday inside a new special economic zone. President Shavkat Mirziyoyev signed the decree on April 17, 2026, with the framework taking effect April 20. Operators approved as zone residents pay no corporate income tax, no property tax, and no land tax for the decade — the only recurring fiscal obligation is a 1% monthly fee on mining income routed to the zone directorate.

The framework, supervised by the National Agency for Perspective Projects (NAPP), legalizes mining, allows domestic and foreign sale of mined assets, and now accepts renewable, hydrogen, and grid power — a deliberate relaxation of the 2023 solar-only mandate. Every sale, domestic or cross-border, must clear through Uzbekistan's banking system, giving the government visibility into flows despite the fiscal generosity.

Why it matters

Karakalpakstan was chosen deliberately: the region carries high poverty rates and a thin industrial base, and a 2025 UNDP report flagged it for economic intervention. The government has committed to grid modernization targeting 1GW capacity to support the zone, and it borders Kazakhstan — already a Central Asian mining heavyweight — giving operators potential grid redundancy. Tax code amendments are due within two months of the April 20 activation, putting a hard deadline on formalization.

Market impact

For miners hunting jurisdictions with fiscal predictability, the package is structurally aggressive: ten years of zero direct tax, a single percentage-point revenue share, and a banking requirement that costs the operator nothing but hands the state a complete tape of every sale. The open question is throughput — whether Uzbekistan's grid can actually deliver the power operators will commit to, and whether the first wave of tenants will be legacy Kazakh operators expanding south or Western miners relocating from jurisdictions with shorter incentive windows.