Key Takeaways:
- On April 17, 2026, the Uzbekistan President signed decree PQ-143 to launch the Besqala Mining Valley in Karakalpakstan.
- NAPP will streamline licensing as companies pay a 1% revenue fee to support the 2035 regional budget goals.
- Mining firms must integrate with the ASKUE system by 2026 to ensure transparent energy use and grid stability.
Streamlined Licensing and Governance
The Uzbekistan President Shavkat Mirziyoyev has signed a decree establishing a specialized crypto-mining district in the Republic of Karakalpakstan. The project, titled “Besqala Mining Valley,” aims to formalize the mining industry while driving economic growth and technological innovation in the region.
The decree, PQ-143, dated April 17, 2026, outlines the framework for the creation and operation of the special mining zone. According to the document, the initiative is designed to attract domestic and foreign investment into the high-tech sector, creating a regulated environment for large-scale cryptocurrency mining operations.
A dedicated directorate will oversee the zone’s administration, acting as a one-stop shop for legal entities seeking residency. Under the new regulations, companies registered within Besqala Mining Valley will benefit from a streamlined licensing process. For example, once the directorate grants a legal entity resident status, the National Agency of Perspective Projects (NAPP) will issue a mining permit without requiring additional documentation.
In addition, residents must pay a monthly fee amounting to 1% of their gross revenue from mining activities to the directorate. The net profits generated by the directorate from these fees will be returned to the state budget of the Republic of Karakalpakstan to support local development.
To ensure transparency and grid stability, mining operations must be integrated into the Automated System for Accounting and Control of Electricity (ASKUE). This allows for separate, precise monitoring of the high energy consumption typical of mining activities.
The decree places a heavy emphasis on financial integrity. Applicants for residency must undergo rigorous vetting to ensure they are not involved in economic crimes, money laundering or the financing of terrorism. Any individual or entity with an active criminal record or suspected links to organized crime will be barred from the zone.
By concentrating mining activities in Karakalpakstan, the Uzbek government aims to leverage the region’s industrial potential while maintaining strict control over the national energy balance. The establishment of Besqala Mining Valley is expected to create new high-tech jobs, improve local infrastructure and provide a significant boost to the regional budget through the 1% revenue-sharing model.