UAE Rises to Second Place in the Henley Crypto Adoption Index 2026 With 46.4 Points Out of 60 and a Perfect 10 for Tax-Friendliness: Ahead of Hong Kong, the USA and Switzerland as the World Counts 135,694 Crypto Millionaires

2026-09-09

The UAE ranks second among the 36 countries in the Henley Crypto Adoption Index 2026, published by Henley & Partners on 8 September 2026 as part of its Crypto Wealth Report 2026, with 46.4 points out of a possible 60. A year earlier the country was fifth. The score is built from six parameters marked out of 10: the UAE received the maximum 10 for Tax-Friendliness, because it levies no tax on crypto trading, staking or mining, 8.9 for Innovation and Technology, 8.0 for Economic Factors, 7.6 for Public Adoption, 7.3 for Regulatory Environment and 4.6 for Infrastructure Adoption. Singapore leads the index for the fourth consecutive year; Hong Kong is third, the USA fourth and Switzerland fifth. The same report counts 135,694 crypto millionaires in the world, 290 centi-millionaires and 23 billionaires, on a total crypto market of USD 2.6 trillion at 31 August 2026. This article sets out what the index measures, where the UAE’s points come from, what is and is not taxed here, who regulates virtual assets, and what the ranking means in practice for a founder, an investor or a company that works with digital assets in the Emirates.

What Henley & Partners published on 8 September 2026

The Crypto Wealth Report is an annual publication of Henley & Partners, the residence and citizenship advisory firm, with wealth statistics supplied by New World Wealth. The 2026 edition was released on Tuesday 8 September 2026 (the wire version was distributed from London at 04:00 US Eastern time, 12:00 in Dubai) and was covered the same evening by Emirates 24|7, which reported the UAE’s full set of scores. The report has two parts: a census of crypto wealth by size of holding, and the Henley Crypto Adoption Index, a proprietary ranking that benchmarks countries offering residence and citizenship pathways on how effectively they “embrace and regulate crypto and blockchain”.

The 2026 index covers 36 countries and draws on more than 900 data points. The 2025 edition, published on 23 September 2025, covered 29 programmes and more than 750 data points, and placed the UAE fifth behind Singapore, Hong Kong, the USA and Switzerland. Seven jurisdictions appear in the index for the first time in 2026: The Bahamas (10th), the Cayman Islands (12th), Bahrain (13th), Argentina (26th), the Maldives (31st), Naoero (32nd) and Paraguay (35th). Each country is scored on six parameters, each out of 10, so the theoretical maximum is 60.

The UAE’s six scores

Henley’s press release names the UAE’s rank, its perfect tax score and the reason for it. The breakdown by parameter was reported by Emirates 24|7 from the report itself; the six figures add up exactly to the published total of 46.4.

Two things stand out in the breakdown. First, the UAE is the benchmark on tax, and it was already a 10 in 2025, so the climb from fifth to second came from the other five parameters. Second, the weakest score by a wide margin is Infrastructure Adoption at 4.6, the parameter on which Hong Kong leads; that is where the gap to first place sits. The rise from fifth to second also came in a year when the index widened from 29 to 36 jurisdictions, which makes the second place harder to earn than it would have been on last year’s field.

The top ten of the index 2026

Outside the top ten, the release singles out Bahrain (13th on debut, and in 2025 the first Gulf state with a dedicated stablecoin framework), Italy (19th, with a flat-tax regime for new residents whose annual charge on foreign-source income has risen to EUR 300,000) and Portugal (23rd, which exempts gains on digital assets held for more than a year). In the EU, the Markets in Crypto-Assets Regulation has applied in full since December 2024, which, in Henley’s reading, leaves member states less room to compete on crypto rules and more reason to compete on tax and residence policy.

Why the tax score is 10: what is and is not taxed in the UAE

The index benchmarks countries for internationally mobile private investors, and its tax parameter describes the position of an individual. On that measure the UAE is straightforward: there is no personal income tax and no capital gains tax on individuals, so a resident who sells, stakes or mines crypto in a personal capacity pays nothing on the gain. That is the basis for the 10 out of 10 in both 2025 and 2026. For a business the picture has more layers, and each of them matters before “zero tax” is written into a plan.

• Corporate tax. Federal Decree-Law No. 47 of 2022 applies to financial years starting on or after 1 June 2023. Taxable profit up to AED 375,000 is taxed at 0% and everything above it at 9%. A company that trades, stakes or mines crypto is taxed on its profit like any other company. A qualifying free zone person can apply 0% to qualifying income, but whether a given crypto activity produces qualifying income is a question for the corporate tax legislation and the free zone’s rules, and it should be confirmed before the 0% rate is assumed.
• VAT. Cabinet Decision No. 100 of 2024, in force since 15 November 2024, added the transfer of ownership and the conversion of virtual assets to the VAT-exempt financial services in Article 42 of the Executive Regulation, with retroactive effect from 1 January 2018; the safeguarding and management of virtual assets is exempt from 15 November 2024. A business that accepts crypto as payment still charges 5% VAT on its goods and services, and since 17 July 2026 it must value each payment in dirhams under FTA Directive No. 3 of 2026: the average rate of three approved centralised exchanges at the date and time of the supply, with timestamped evidence kept for audit.
• Reporting. No tax does not mean no reporting. According to the Henley release, 76 jurisdictions have signed up to the OECD Crypto-Asset Reporting Framework (CARF) and the first exchanges of information between 46 of them are due in September 2027. The UAE Ministry of Finance signed the CARF multilateral competent authority agreement in September 2025 and ran a public consultation from 15 September to 8 November 2025; the Ministry’s timeline is go-live in 2027 and first exchanges in 2028. From then on, crypto-asset service providers in the UAE will collect their users’ tax residency and transaction data and the UAE will exchange it with partner jurisdictions. For a person whose only tax residence is the UAE there is no income tax to report; for someone who keeps a tax residence elsewhere, the data will reach that country’s tax authority.

Who regulates virtual assets in the UAE

The release credits Dubai with establishing “the world’s first standalone regulator for virtual assets in 2022”. The Virtual Assets Regulatory Authority (VARA) was created in March 2022 under Dubai Law No. 4 of 2022 and supervises virtual asset activities in every zone of the emirate, including the free zones, with the exception of the Dubai International Financial Centre. Its Virtual Assets and Related Activities Regulations 2023 and four mandatory rulebooks (Company, Compliance and Risk Management, Technology and Information, Market Conduct) apply to every licensed provider. In practice the UAE has four regulators for the sector:

1. VARA in Dubai, outside DIFC. The most recent example of its pipeline is the DMCC-VARA tokenisation framework, under which the world’s largest silver bar was tokenised on 7 September 2026.
2. The Securities and Commodities Authority (SCA) at federal level, under Cabinet Resolution No. 111 of 2022, in force since 14 January 2023, for the other emirates and in cooperation with VARA in Dubai.
3. The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market, which introduced the first purpose-built virtual asset framework in the world in 2018 and which, according to ADGM’s half-year results, oversaw 13,974 active licences and 392 financial services entities at the end of June 2026.
4. The Dubai Financial Services Authority (DFSA) in DIFC, where Standard Chartered launched institutional Bitcoin and Ether spot trading on 3 September 2026.

The Central Bank’s Digital Dirham project, cited by Emirates 24|7 among the factors behind the ranking, sits alongside this structure rather than inside it. The four-regulator map is the reason the UAE scores 7.3 rather than 10 on Regulatory Environment, where Malta leads: the rules exist and are enforced, but a business must first work out which of the four it answers to, and the answer depends on the emirate and the zone in which it is licensed.

Wealth mobility: the UAE at 85.3 out of 100

The same release quotes Henley’s Global Wealth Mobility Framework, which measures the conditions that attract and retain mobile wealth, from investor access and rule of law to quality of life and tax. The UAE leads it with a Wealth Mobility Competitiveness Score of 85.3 out of 100, ahead of Singapore at 79.5, New Zealand at 75.8, the Cayman Islands at 74.3 and Cyprus at 73.5. The numbers match what other censuses have shown this year: Dubai is home to 81,200 resident millionaires in Henley’s own count and to 43 of the UAE’s 59 billionaires in Altrata’s census. Dominic Volek, Group Head of Private Clients at Henley & Partners, puts the mechanism in one sentence: “Crypto may be borderless, but the families who own it are not. They still live, pay tax, educate their children, and operate within national legal and regulatory systems.”

Global crypto wealth in numbers

The wealth figures in the 2026 report are calculated on a new methodology at market prices of 31 August 2026. Henley states in its notes to editors that they are not comparable with earlier editions and that no year-on-year change is published. The 2025 figures are shown here for reference only.

The market backdrop is a correction: Bitcoin trades roughly 38% below its October 2025 peak after a mid-year drawdown of more than 50%, which the report calls the mildest of its major winters, since the declines after the 2011, 2013, 2017 and 2021 peaks each exceeded 75%. Ownership kept widening through the downturn, and the report argues that this, together with stablecoin rails that move dollars between a Dubai custodian, a Singapore family office and a European bank account within minutes, is what keeps jurisdictional choice at the centre of crypto wealth planning.

What this means for business in the UAE

1. For a founder or investor with crypto wealth who is considering the UAE. The 10 out of 10 applies to what you hold personally. Residence comes through one of the standard routes: an employment residence visa through your own company, or a Golden Visa in the investor category, which requires a minimum capital of AED 2 million in public investments or real estate. Crypto holdings are not a Golden Visa category by themselves.
2. For a company that trades or holds crypto. Profit above AED 375,000 is taxed at 9%. Keep personal and corporate holdings on separate wallets and separate books, because the tax position of the two is different and the auditor will ask.
3. For a business that provides crypto services to others. Exchange, brokerage, custody, advisory and tokenisation are licensed activities, and the licence comes from VARA, the SCA, the FSRA or the DFSA depending on where the company sits. The licence is obtained before the bank account, not after.
4. For anyone bringing crypto proceeds into a UAE bank. Banks apply enhanced due diligence to crypto-linked funds. Exchange statements, wallet histories and proof of the original source of the money are requested as standard. Daniel Hartnett of LSEG Risk Intelligence, quoted in the report, states the bank’s position: “A wallet can show that value exists. It cannot tell the whole story of the person behind it.”
5. For a business that accepts crypto payments. Output VAT at 5% is unchanged, and the dirham value of each payment is set by the three-exchange average at the date and time of the supply under FTA Directive No. 3 of 2026.
6. For everyone, from 2027. CARF reporting starts. Where your tax residence is on the day the first report is generated will decide which tax authority receives your UAE transaction data.

Checklist: crypto wealth and the UAE

• Decide whether crypto will be held personally (no tax on the gain) or through a company (9% above AED 375,000) and document the choice.
• Choose the residence route: employment visa through a company or the investor Golden Visa at AED 2 million.
• If the business will serve clients, identify the regulator by location (VARA, SCA, FSRA or DFSA) and budget for the licence timeline before the bank account.
• Assemble the source-of-funds file for the bank: exchange statements, wallet histories, contracts and the original fiat source.
• If the business accepts crypto, appoint three approved exchanges for valuation and keep timestamped rate evidence for every payment.
• Confirm which countries still treat you as tax resident and settle the position before CARF reporting goes live in 2027.
• Book a licensed tax adviser for the corporate tax and VAT treatment of the specific activity; the general rules above are not a ruling on your case.

How Atlant Capital Can Help

Atlant Capital registers companies in the UAE on the mainland and in free zones, including holding structures for founders who relocate with digital assets, and we choose the licence and jurisdiction so that the activity matches what the company will actually do. We open corporate bank accounts and prepare the source-of-funds file that banks request when crypto proceeds are involved. We obtain employment residence visas for owners and staff and support Golden Visa applications in the investor category. For corporate tax, VAT and CARF reporting we work with licensed accounting and tax firms from our partner network. Contact us to discuss a structure.

Conclusion

Second place among 36 countries with 46.4 points out of 60, up from fifth a year earlier, is the headline; the substance is in the six numbers behind it. The UAE is the benchmark on tax with a 10, scores 8.9 on innovation and 8.0 on economic factors, and loses ground only on infrastructure adoption at 4.6. For an individual investor the tax score is exactly what it says. For a company the 9% corporate tax, the VAT rules on crypto payments and CARF reporting from 2027 are the framework within which that zero rate operates, and a plan that ignores them will meet them at the bank or at the audit. The 135,694 crypto millionaires the report counts are the market the UAE is competing for, and the index says it is now second in that competition.

Sources: Henley & Partners, press release “Crypto Wealth Report 2026” of 8 September 2026 (henleyglobal.com and GlobeNewswire) and press release “Crypto Wealth Report 2025” of 23 September 2025; Emirates 24|7, “UAE cements status as global crypto hub” of 8 September 2026; Virtual Assets Regulatory Authority, “About VARA”; Dubai Law No. 4 of 2022; Cabinet Resolution No. 111 of 2022; Federal Decree-Law No. 47 of 2022 on corporate tax; Cabinet Decision No. 100 of 2024 amending the VAT Executive Regulation; FTA Directive No. 3 of 2026; UAE Ministry of Finance, announcement of the signing of the CARF multilateral competent authority agreement (September 2025); u.ae, Golden Visa eligibility.

FAQ

Where does the UAE rank in the Henley Crypto Adoption Index 2026?

Second out of 36 countries, with 46.4 points out of 60, behind Singapore and ahead of Hong Kong, the USA and Switzerland. In the 2025 edition the UAE was fifth. The index was published by Henley & Partners on 8 September 2026 as part of the Crypto Wealth Report 2026 and scores each country on six parameters out of 10: the UAE received 10 for Tax-Friendliness, 8.9 for Innovation and Technology, 8.0 for Economic Factors, 7.6 for Public Adoption, 7.3 for Regulatory Environment and 4.6 for Infrastructure Adoption.

Is cryptocurrency taxed in the UAE?

Not for individuals: the UAE has no personal income tax and no capital gains tax, so gains from trading, staking or mining held in a personal capacity are not taxed, which is why the index gives the country 10 out of 10. Companies pay corporate tax at 9% on taxable profit above AED 375,000 under Federal Decree-Law No. 47 of 2022. The transfer and conversion of virtual assets are exempt from VAT under Cabinet Decision No. 100 of 2024, with retroactive effect from 1 January 2018, while goods and services paid for in crypto remain subject to 5% VAT valued in dirhams under FTA Directive No. 3 of 2026.

Who regulates crypto businesses in the UAE?

Four authorities, depending on location. VARA, created in March 2022 under Dubai Law No. 4 of 2022, licenses virtual asset activities in Dubai outside DIFC. The Securities and Commodities Authority is the federal regulator under Cabinet Resolution No. 111 of 2022, in force since 14 January 2023. ADGM’s Financial Services Regulatory Authority has run its own virtual asset framework since 2018, and the Dubai Financial Services Authority regulates the sector inside DIFC. A licence from the relevant regulator is required before a company offers exchange, brokerage, custody, advisory or tokenisation services to clients.

How many crypto millionaires are there in 2026?

The Crypto Wealth Report 2026 counts 135,694 individuals with crypto holdings of USD 1 million or more, of whom 92,272 hold their million in Bitcoin, plus 290 centi-millionaires with USD 100 million or more and 23 billionaires, at market prices of 31 August 2026 and a total crypto market of USD 2.6 trillion. Henley notes that the 2026 figures use a new methodology and are not comparable with the 241,700 crypto millionaires reported in the 2025 edition.