The President of Uzbekistan signed a decree on the establishment of a special crypto-mining forum

Key Takeaways:

On April 17, 2026, the President of Uzbekistan signed Decree PQ-143 to start the Besqala Mining Valley in Karakalpakstan. NAPP streamlines licensing as companies pay 1% of revenue to support 2035 state budget goals. Mining companies must join the ASKUE system by 2026 to ensure transparent energy usage and grid stability.

Streamlined licensing and management

The President of Uzbekistan, Shavkat Mirziyoyev, has signed a decree to establish a special crypto-mining district in the Republic of Karakalpakstan. The project titled “Besqala Mining Valley” aims to normalize the mining industry by driving economic growth and technological innovation in the region.

In the year Decree PQ-143 of April 17, 2026 outlines the framework for the creation and implementation of the Special Mining Zone. According to the document, the initiative is designed to attract domestic and foreign investments into the high-tech sector, creating an environment conducive to large-scale cryptocurrency mining operations.

An autonomous directorate oversees the administration of the zone, serving as a one-stop shop for legal entities seeking residency. Under the new regulations, companies registered in the Beskala Mining Valley will benefit from a streamlined licensing process. For example, once the Directorate grants residency status to an entity, the National Agency for Prospective Projects (NAPP) issues a mining permit without the need for additional documentation.

In addition, the residents have to pay a monthly fee of 1% of their gross income to the Directorate. The net profit obtained by the directorate from these payments will be returned to the state budget of the Republic of Karakalpakstan for the support of local development.

Mining operations should be integrated into the Automated Accounting and Electricity Control System (ASKUE) to ensure transparency and grid stability. This allows for separate and accurate monitoring of high energy consumption in mining operations.

The Act places great emphasis on financial integrity. Applicants for residency must undergo rigorous screening to ensure they are not involved in economic crimes, money laundering or terrorist financing. Any individual or entity suspected of having a criminal record or associated with organized crime will be banned from the zone.

The Uzbek government aims to capitalize on the region's industrial potential by consolidating mining operations in Karakalpakstan while maintaining tight control over the country's energy balance. The establishment of the Besqala Mining Valley is expected to create new high-tech jobs, improve local infrastructure and generate significant growth for the region's budget through a 1 percent revenue sharing model.