The United Arab Emirates (UAE) has now officially become a global crypto hub. According to Henley & Partners’ 2025 Crypto Wealth Report, the Emirates is counted among the top 5 crypto-friendly jurisdictions in the world. This recognition comes from the UAE’s perfect tax score, strong government support, and rapidly growing blockchain ecosystem.
Zero-Tax Policy: The Biggest Advantage
According to the Henley Crypto Adoption Index, the UAE achieved a full 10/10 score in the tax-friendliness category. This was made possible by the government imposing zero tax on cryptocurrency trading, staking, mining, and selling. This policy applies equally to all seven emirates.
This has earned the UAE and Monaco both the title of “world’s most tax-friendly countries for cryptocurrencies.” This policy is particularly attractive to high-net-worth individuals (HNWIs) and crypto entrepreneurs looking to maximize their capital gains without additional regulatory burdens.
Today, the UAE stands among the top 5 crypto hubs in the global rankings – alongside Singapore, Hong Kong, the USA, and Switzerland.
Global Leader in Crypto Adoption and Innovation
According to the Henley Report, the UAE ranks second globally in crypto adoption, behind only the USA. In terms of innovation and technology, the UAE secured the fourth rank – reflecting its digital readiness and futuristic approach.
The Index evaluated 29 migration programs across six categories:
Public Adoption
Infrastructure Adoption
Innovation & Technology
Regulatory Environment
Economic Factors
Tax-Friendliness
And the UAE demonstrated strong performance in almost every area. The report states: “The UAE combines one of the most crypto-friendly tax environments with high levels of digital adoption, attracting both retail users and businesses.”
Government’s Strategic Moves: VARA, Digital Dirham, and Golden Visa
UAE’s crypto success isn’t solely due to tax policy. The government has established long-term and structured regulatory frameworks that directly support blockchain growth.
Some major initiatives include:
Dubai Virtual Assets Regulatory Authority (VARA): Established in 2022, it is the world’s first regulator specifically dedicated to virtual assets.
DMCC Crypto Centre: Located in the Dubai Multi Commodities Centre, it is home to over 650 blockchain companies. It is a major crypto innovation cluster.
Digital Dirham Program: The UAE Central Bank has launched a CBDC (central bank digital currency) initiative, pushing for broader digital finance adoption.
Additionally, the Golden Visa program and dedicated visa tracks for tech entrepreneurs have made the UAE a hub for long-term crypto builders and investors.
Global Crypto Wealth Boom and UAE’s Benefits
Henley’s 2025 Crypto Wealth Report revealed another major trend – the global crypto wealth explosion.
Some key numbers:
Crypto millionaires have now reached 241,700 (a 40% jump in just 1 year).
Bitcoin millionaires have increased 70% YoY to 145,100.
Centi-millionaires (100M+ portfolios) have now reached 450, a 38% growth.
Crypto billionaires have reached 36, a 29% YoY increase.
Global crypto market valuation $3.3 trillion (45% YoY growth).
This new wealth class is creating an influx into crypto-friendly destinations like the UAE.
Dominic Volek, Group Head of Private Clients at Henley & Partners, says:
“Cryptocurrency has made geography optional. With just 12 memorized words, an individual can access their billion-dollar Bitcoin from anywhere – be it Zurich or Zhengzhou.”
This mobility factor has become a major attraction for the UAE.
Crypto Adoption in the UAE: Highest
According to Friederik Bussler (Bussler & Co.), 30% of the UAE’s population owns cryptocurrencies – the highest globally.
Additionally, Catherine Chen (Head of VIP & Institutional, Binance) says:
“Crypto investors are using citizenship by investment programs as a strategic tool. The UAE’s residency and visa policies are a perfect match for this mobility-driven class.”
Regional Comparison: UAE Leads the Pack
Singapore: Currently also leading the global index, primarily due to its infrastructure and regulatory environment.
Thailand: Introduced a 5-year capital gains tax exemption for crypto trading.
Malaysia: Pushing fintech and blockchain through the Digital Free Trade Zone initiative.
But the UAE stands out due to its early adoption, zero taxes, and comprehensive framework.
Conclusion
The UAE has transformed its desert land into a digital oasis. While global governments are still mulling strategies to adopt crypto, the UAE, with its structured and aggressive approach, has cemented its place among the world’s top 5 crypto currencies.