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From VARA’s world-first regulatory framework to the Digital Dirham project, here’s why the UAE scored 46.4 out of 60 in the Henley Cryptocurrency Adoption Index
Dubai: The UAE has strengthened its position on the global digital economy map, after advancing to second place globally in the Henley & Partners Cryptocurrency Adoption Index 2026, compared to fifth place in last year’s edition, becoming one of the most attractive environments for owners of digital assets and wealth associated with cryptocurrencies.
The UAE scored 46.4 out of 60 points in the overall assessment of the index, which covers 36 countries offering residency or citizenship programs and monitors the development of the cryptocurrency and digital asset ecosystem across six pillars. The UAE’s performance was primarily driven by a perfect score in the tax system attractiveness criterion, along with a high ranking in innovation and technology, and the level of cryptocurrency adoption.
The tax system was one of the UAE’s strongest assets in the ranking, with the country achieving a perfect score of 10 in the “Tax Attractiveness” criterion, topping all other countries included in this category. The assessment considers the tax burden on private investors in cryptocurrencies, the clarity of tax policies, including the tax treatment of investment gains from digital assets, and the highest personal income tax rate.
According to the report, the UAE does not impose taxes on trading, holding, or mining cryptocurrencies, which supports its ability to attract investors and digital wealth owners who can transfer their assets and investments across borders.
Innovation and technology
In the “Innovation and Technology” criterion, the UAE ranked second globally with 8.9 points out of 10, reflecting what the report describes as the evolving supportive environment for the cryptocurrency and digital asset sector. This criterion tracks government initiatives related to blockchain and digital currencies, along with efforts to develop central bank digital currencies.
The UAE system includes multiple regulatory frameworks for digital assets, including the specialised virtual asset system in Dubai, a separate framework for cryptocurrencies in the Dubai International Financial Centre, as well as other frameworks implemented in various financial centres in the country.
The market also saw updates to the rules for trading platforms, asset custody, and the issuance of digital tokens, in parallel with government initiatives such as the Digital Dirham project.
In terms of usage and participation, the UAE scored 7.6 points in the “Public Adoption” criterion, ranking third globally. This metric measures the level of awareness of cryptocurrencies, public interest in them, and their participation in this market.
In the “Economic Support Factors” criterion, the UAE scored 8 points, ranking tenth globally. This assessment combines a range of economic and financial indicators, including economic stability, financial inclusion, smartphone and internet penetration, and broadband speed.
On the regulatory front, the UAE scored 7.3 out of 10, ranking tenth globally. This index measures the development of the legal and regulatory framework governing cryptocurrencies and blockchain technologies, including rules for initial coin offerings (ICOs), the legal status of crypto assets, and the clarity and strength of the regulatory system.
Virtual Assets Regulatory Authority
The report notes that in 2022, Dubai established the Virtual Assets Regulatory Authority, which became the world’s first independent regulatory body specialising in this sector, a move that helped solidify the emirate’s position as a centre for developing regulatory frameworks for digital assets.
In the “Infrastructure Readiness” criterion, the UAE scored 4.6 points, ranking tenth globally. This aspect focuses on the availability of the technological infrastructure needed by users and businesses to conduct cryptocurrency transactions and trading. This includes the prevalence of cryptocurrency ATMs, the integration of digital assets with the local banking system, the availability of digital asset trading platforms, and the number of companies that offer cryptocurrency payments.
Globally, Henley & Partners estimates that there are 135,694 individuals with cryptocurrency assets worth $1 million (Dh3.67 million) or more, including 92,272 Bitcoin millionaires. The total market capitalisation of cryptocurrencies was approximately $2.6 trillion (Dh9.55 trillion) as of August 31, 2026, with Bitcoin accounting for roughly $1.6 trillion (Dh5.88 trillion) of that total.
The top of the digital wealth pyramid includes 290 people whose crypto assets are worth at least $100 million (Dh367 million), including 151 people who amassed their fortunes from Bitcoin, in addition to 23 cryptocurrency billionaires, nine of whom are Bitcoin billionaires.
At the base of the pyramid, the number of people who own some digital assets, however small, has risen to 742 million, including 371 million who own Bitcoin, indicating the expansion of the digital asset ownership base despite the market downturn.
The Henley Index is based on more than 900 data points, distributed across six main criteria, 15 sub-criteria, and 26 indicators, to assess the development of cryptocurrency and digital asset environments in countries that offer formal pathways to residency or citizenship for investors. The index covers six key areas: public adoption, infrastructure readiness, innovation and technology, regulatory environment, economic factors, and tax attractiveness.
Source: www.emirates247.com