A region long marked by poverty and sparse industry is getting an unusual shot at foreign money — through crypto mining.
Karakalpakstan Opens Its DoorsUzbekistan has designated the autonomous Republic of Karakalpakstan as the home of a new state-sanctioned mining zone called Besqala Mining Valley.
The catch — all revenue must land in Uzbek bank accounts.
The United Nations Development Programme flagged Karakalpakstan in a 2025 report as a region struggling with high poverty rates and little industrial base. That context matters.
Tax Breaks Run Through 2035Officials have also been told to propose updates to the national tax code within two months, so the full picture isn’t final yet.
Energy rules have also been loosened. Back in 2023, Uzbekistan required licensed mining firms to run entirely on solar power. The new decree drops that restriction.
Miners inside Besqala Mining Valley can now draw from renewable sources, hydrogen, and the national grid. Grid electricity comes at higher rates, but the option is on the table — something that wasn’t allowed before.
A Broader Investment Push Takes ShapeUnder that program, foreign companies putting in $100 million or more receive full tax and duty exemptions until 2040. Officials expect that initiative alone to pull in more than $1 billion in foreign investment by 2030.
Taken together, both zones point to a deliberate strategy — use Karakalpakstan’s low-cost, underdeveloped land as bait for capital-heavy industries.
Crypto mining and data infrastructure require land, power, and regulatory clarity. Uzbekistan is betting it can supply all three.
Featured image from Pexels, chart from TradingView
