The UAE has climbed to No. 2 in a global crypto ranking, earning a perfect score for tax friendliness as it continues to build its position as a major centre for digital assets.
The country scored 46.4 out of 60 in the 2026 Henley Crypto Adoption Index, rising from fifth place in the previous ranking. Singapore held on to the top spot with 47.1 points, while Hong Kong finished third with 46.2.
The index assesses 36 countries across six areas: public adoption, infrastructure adoption, innovation and technology, regulation, taxation and economic factors.
UAE Scores 10/10 for Crypto Tax Friendliness
Taxation was the UAE’s strongest category, with the country receiving a perfect 10 out of 10.
The UAE’s favourable tax environment for individual cryptocurrency investors helped it secure the maximum score, adding to its appeal among people investing and working in the digital-asset sector.
The country also performed strongly in several other areas. It scored 7.6 for public adoption, 4.6 for infrastructure adoption, 8.9 for innovation and technology, 7.3 for regulation and 8.0 for economic factors.
Together, those scores placed the UAE ahead of established cryptocurrency markets including the United States and Switzerland.
Dubai Expands Virtual Asset Regulation
Dubai has played a central role in the UAE’s development as a digital asset hub.
The emirate established the Virtual Assets Regulatory Authority (VARA) in 2022 to oversee virtual-asset activities and businesses operating within its jurisdiction.
The UAE’s financial centres have also developed frameworks covering digital assets. The Dubai International Financial Centre, for example, has introduced rules for certain activities involving digital assets.
This regulatory development, combined with the UAE’s tax environment and investment in financial technology, has helped create a more established market for crypto companies, entrepreneurs and investors.
Singapore Keeps Top Spot
Singapore remained the world’s highest-ranked jurisdiction in the 2026 index, scoring 47.1 points and retaining first place for the fourth consecutive year.
The gap between Singapore and the UAE was just 0.7 points, with Hong Kong another 0.2 points behind the Emirates.
The United States ranked fourth with 43.7 points, followed by Switzerland with 43.4. Malta, Thailand, the United Kingdom and Cyprus occupied the next four positions, while the Bahamas completed the top 10.
Bahrain also featured in the ranking, taking 13th place.
The United States achieved a 10 out of 10 for public adoption, the highest possible score in that category.
UAE Leads Wealth Mobility Ranking
The UAE also took first place in Henley’s Wealth Mobility Competitiveness measure, which looks at how effectively jurisdictions attract and retain internationally mobile wealth.
The country scored 85.3 out of 100, comfortably ahead of Singapore at 79.5. New Zealand, the Cayman Islands and Cyprus completed the top five.
The result reflects the UAE’s wider appeal to investors, entrepreneurs and wealthy individuals, supported by its international connectivity, business environment and expanding financial sector.
Crypto Market Valued at $2.6 Trillion
Beyond the country rankings, the report offers a picture of how much private wealth is now held in cryptocurrencies.
An estimated 135,694 people worldwide hold at least $1 million in cryptocurrency, including around 92,272 Bitcoin millionaires.
At the upper end of the market, 290 people are estimated to hold crypto assets worth at least $100 million. There are also 23 cryptocurrency billionaires worldwide, nine of whom are Bitcoin billionaires.
The global cryptocurrency market was valued at approximately $2.6 trillion as of August 31, 2026, with Bitcoin accounting for around $1.6 trillion.
Henley changed the methodology used to estimate cryptocurrency wealth for its 2026 report. The updated approach combines public blockchain and market data with adjustments aimed at estimating individual ownership rather than simply counting cryptocurrency addresses.
That change means the latest wealth figures cannot be directly compared with previous editions to calculate year on year growth.
The UAE’s rise from fifth to second puts it within a narrow margin of the top position in the global index. More importantly, its performance across taxation, innovation, regulation and economic factors shows that its crypto ambitions are no longer built around a single advantage.
With digital assets becoming a more established part of global finance, the latest ranking places the UAE firmly among the jurisdictions competing to shape the sector’s next phase of growth.
