The United Arab Emirates has risen three places to rank second in the 2026 Henley Crypto Adoption Index, finishing narrowly behind Singapore and moving ahead of Hong Kong, the United States and Switzerland.
A maximum score for tax friendliness helped lift the UAE, although the index also points to gaps in infrastructure and regulatory performance.
The UAE recorded an overall score of 46.4 out of 60 in the Henley Crypto Adoption Index 2026, compared with Singapore’s 47.1. Hong Kong followed in third place with 46.2, while the US and Switzerland completed the top five with 43.7 and 43.4, respectively. The result moved the UAE from fifth place in the previous edition to second.
Henley’s index assesses six areas: public adoption, infrastructure adoption, innovation and technology, the regulatory environment, economic factors and tax friendliness. Each category carries a maximum score of 10, producing a total possible score of 60. The UAE received 7.6 for public adoption, 4.6 for infrastructure, 8.9 for innovation and technology, 7.3 for regulation, 8.0 for economic factors and 10 for tax friendliness.
Singapore retained first place for a fourth consecutive year and posted the index’s highest innovation and technology score. Hong Kong led the infrastructure adoption and economic factors categories, while the US was the only jurisdiction to receive 10 points for public adoption. Switzerland, in fifth place, continued to score strongly in innovation and broader economic conditions. Those differences show that the leading jurisdictions arrived near the top through different combinations of market participation, policy and infrastructure.
Tax Treatment Strengthens the UAE’s Score
Tax policy provided the UAE’s clearest advantage. Henley awarded the country 10 out of 10 for tax friendliness and described it as imposing no tax on individual crypto trading, staking or mining. The score reflects the index’s assessment of tax burdens on private investors, policy clarity and the highest applicable personal income-tax rate rather than every possible tax obligation faced by a crypto company or professional trader.
According to the UAE Ministry of Finance, federal corporate tax applies to UAE companies and other legal entities, along with individuals conducting qualifying business activities. Free-zone companies also fall within the system, though eligible entities may benefit from a zero rate on qualifying income.
Henley’s assessment is therefore most relevant to private investors rather than every participant in the digital-asset industry. Exchanges, mining businesses, professional traders and other commercial operators may face different obligations. The perfect score reflects the UAE’s comparative appeal for private crypto wealth, not a universal exemption covering all digital-asset activity.
Regulation Adds Weight, but Infrastructure Lags
The UAE’s 8.9 innovation and technology score was its second-strongest category result. Henley cited government blockchain initiatives, work on the Digital Dirham and the development of specialized regulatory systems across the federation. Dubai has one framework for much of the emirate, while the Dubai International Financial Centre operates under a separate legal and regulatory structure. Abu Dhabi Global Market also maintains its own virtual-asset regime.
Dubai established the Virtual Assets Regulatory Authority in March 2022 under Law No. 4 of 2022. VARA regulates virtual-asset activities across Dubai’s mainland and free zones, excluding the Dubai International Financial Centre. Its responsibilities include licensing, supervision, market-conduct requirements and enforcement. The dedicated authority provides digital-asset businesses with a clearer regulatory framework while setting standards for compliance, governance and market integrity.
Infrastructure remains a weaker part of the UAE’s profile. Its score of 4.6 placed it well below its results for tax, innovation and economic conditions. Henley measures infrastructure through factors including access to exchanges, integration with banking services, crypto-enabled businesses and cryptocurrency ATMs. The contrast suggests that regulatory development and investor-oriented policy have advanced more quickly than some of the everyday systems required for broad use.
The Ranking has a Defined Scope
Henley describes the index as a comparison of 36 countries that provide formal residence or citizenship pathways. Its methodology draws on more than 900 data points distributed across six main categories, 15 subcategories and 26 indicators.
The index forms part of the Crypto Wealth Report 2026. Henley estimates that 135,694 people worldwide hold at least $1 million in cryptocurrency, including 92,272 Bitcoin millionaires. It also estimates that the total cryptocurrency market, including stablecoins, was worth $2.6 trillion as of August 31, with Bitcoin accounting for approximately $1.6 trillion.
Henley said it used a new methodology for its 2026 wealth estimates, relying on public blockchain and market information with adjustments intended to estimate individual owners rather than simply counting wallet addresses. The firm cautioned that the latest wealth figures are not directly comparable with those in earlier editions. Its country ranking gives a current view of how tax policy, regulation, technology and mobility programs are shaping competition for internationally mobile digital-asset investors.
