Uzbekistan Opens Besqala Mining Zone, Imposes 1% Fee

President Shavkat Mirziyoyev signed decree PQ-143 on April 17, 2026, creating Besqala Mining Valley, a specialized crypto‑mining district in the Republic of Karakalpakstan. The decree establishes rules for licensing, revenue sharing and energy monitoring for large‑scale cryptocurrency mining.

A directorate will administer the zone and act as a one‑stop office for legal entities seeking resident status. After the directorate grants residency, the National Agency of Perspective Projects (NAPP) will issue mining permits without requiring additional documentation.

Companies registered in Besqala Mining Valley must pay a monthly fee equal to 1% of gross revenue from mining activities. The directorate will return net profits from those fees to the state budget of the Republic of Karakalpakstan to support regional budget targets through 2035. Applicants will undergo vetting to exclude involvement in economic crime, money laundering or financing of terrorism. Individuals or entities with active criminal records or suspected links to organized crime are barred from residency.

Mining operations must connect to the Automated System for Accounting and Control of Electricity (ASKUE) by 2026. The decree requires separate metering and reporting of electricity consumption for mining facilities to provide transparent energy accounting and support grid stability.

Officials expect the zone to attract domestic and foreign investment, create high‑tech jobs and fund local infrastructure projects. The government says concentrating mining activities in Karakalpakstan will allow central oversight of large electricity consumers.