UAE rises to second in global crypto ranking with perfect tax score

Henley Crypto Adoption Index 2026 places UAE just behind Singapore, citing 10 out of 10 for tax friendliness and strong regulatory innovation.

The UAE rises to second in global crypto ranking with perfect tax score, according to the Henley Crypto Adoption Index 2026. The country achieved a total score of 46.4 out of 60, trailing only Singapore’s 47.1, and surpassing Hong Kong, the US, and Switzerland. The UAE received a 10 out of 10 for tax friendliness, reflecting the absence of tax on cryptocurrency trading, staking, or mining, as cited by Henley & Partners.

The index evaluates 36 countries offering residence and citizenship pathways, scoring them across six categories: public adoption, infrastructure, innovation and technology, regulatory environment, economic factors, and tax. The UAE’s scores included 7.6 for public adoption, 4.6 for infrastructure, 8.9 for innovation and technology, 7.3 for regulatory environment, 8.0 for economic factors, and a perfect 10 for tax. This marks a three-place climb from last year’s fifth position.

Henley highlighted the UAE’s multi-layered digital asset market, noting dedicated virtual asset regulation in Dubai, a separate crypto framework in the Dubai International Financial Centre, and established regimes in other financial centres. Updated rules for exchanges, custody, and token issuance, along with the Digital Dirham and favourable personal taxation, contributed to the UAE’s strong performance.

Globally, Henley estimates that 135,694 people hold at least $1 million in cryptocurrency, with the total cryptocurrency market valued at $2.6 trillion as of August 31, 2026. Of these, 92,272 are Bitcoin millionaires, and 23 are crypto billionaires. The report introduced a revised methodology for estimating crypto wealth, using public blockchain and market data to better reflect individual holders.

Singapore retained the top spot for the fourth consecutive year, while Hong Kong ranked third, the US fourth, and Switzerland fifth. The Bahamas and Bahrain entered the top 15 this year. Henley also ranked the UAE first in its Wealth Mobility Competitiveness measure, with a score of 85.3 out of 100, ahead of Singapore and New Zealand.

Source: https://gulfnews.com/your-money/cryptocurrency/uae-rises-to-no-2-in-global-crypto-ranking-with-10-out-of-10-tax-score-1.500668326