A New Mining Hub Is Taking Shape
Uzbekistan is making a serious move into Bitcoin mining, rolling out a dedicated “crypto mining valley” designed to attract global operators.
The project, officially called the Besqala Mining Valley, will be built in the autonomous Republic of Karakalpakstan, a region bordering mining heavyweight Kazakhstan. The initiative comes directly from a decree signed by President Shavkat Mirziyoyev, signaling top-level backing for the sector.
At its core, this isn’t just another mining project-it’s a special economic zone tailored specifically for crypto mining.
Zero Taxes Until 2035
The biggest draw is simple: miners won’t pay income tax for nearly a decade.
According to the government decree, companies operating inside the valley will enjoy tax exemptions until January 1, 2035, alongside additional incentives aimed at lowering operational costs.
For an industry where margins are tightly tied to electricity and taxation, this kind of long-term clarity is a major advantage-and a direct attempt to compete with established mining regions.
Power Strategy: Grid + Hydrogen
Energy is where most mining hubs succeed or fail, and Uzbekistan is trying to solve that upfront.
Operators in the valley will get direct access to the national power grid, which is increasingly powered by renewable sources. On top of that, the government plans to supplement supply with hydrogen-based power plants built locally in Karakalpakstan.
That hybrid approach is designed to avoid the problems seen in neighboring countries, where mining booms have strained national grids and triggered regulatory crackdowns.
Full Access to Global Markets
Unlike some jurisdictions that restrict crypto flows, Uzbekistan is giving miners freedom to sell their output both locally and internationally.
Companies operating in the zone will be able to trade mined assets on global platforms without restrictions, adding another layer of attractiveness for large-scale operations.
However, entry into the valley won’t be automatic. All mining firms will need to be licensed by the National Agency for Prospective Projects (NAPP) and approved as official residents of the zone.
A Late Entry Into a Competitive Region
Uzbekistan is not starting from the front-it’s playing catch-up.
While the country introduced mining regulations years ago, there were reportedly no officially registered crypto farms until recently. That changed earlier this year when the first mining license was issued to local company NexaGrid.
Now, the government is accelerating its efforts, trying to position itself alongside regional players.
The Central Asia Mining Race Is Heating Up
The move comes at a time when the entire region is reshuffling its position in the global mining map.
Kazakhstan, once responsible for around 13% of global Bitcoin hashrate, lost momentum after raising electricity costs to manage energy shortages caused by a mining surge following China’s ban. Although restrictions have since been partially eased, the country’s appeal has fluctuated.
Kyrgyzstan also halted mining operations during the winter due to power shortages, only to signal a restart later as profitability returned.
Meanwhile, Turkmenistan recently legalized crypto mining and trading, adding yet another competitor into the mix.
Against that backdrop, Uzbekistan’s strategy is clear-it’s offering predictability, incentives, and energy access in one package.
A Broader Crypto Shift Is Underway
The mining valley is just one part of Uzbekistan’s wider shift toward digital assets.
While crypto payments are still restricted domestically, the government has begun opening the door to stablecoin-based settlements, signaling a gradual move toward integrating blockchain into its financial system.
That combination-mining infrastructure plus selective financial adoption-suggests the country is trying to build a controlled but competitive crypto ecosystem.
