DUBAI, UAE — September 10, 2026: The UAE has soared to the next level of the global cryptocurrency ladder, taking second place in the Henley Crypto Adoption Index 2026 compared with the previous fifth place it was at in the same index.
The UAE scored 46.4 points out of 60, which is very close to Singapore, which scored 47.1 at the same time. In addition, the UAE managed to outrank Hong Kong with its score of 46.2. Moreover, the fifth place is occupied by another major country, which is the US, with a score of 43.7 points. Switzerland has a score of 43.4 points, being in fifth place on the Henley list.
However, the factor that makes the UAE more favourable to investors is its perfect score of 10 out of 10 for tax friendliness. Henley & Partners said this score means the countries have no taxes on crypto transactions and trading in the index.
The benefits offered by taxation are supported by an effective regulatory framework. Under Law 4 of 2022, Dubai set up the Virtual Asset Regulatory Authority (VARA) to supervise virtual assets and provide regulations for virtual asset service providers in most of the emirate.
The UAE proves that it is achieving much more than tax advantages. It scored 8.9 in innovation and technology, 8.0 in the economic category, 7.6 in public adoption, 7.3 in the regulation section, and 4.6 with respect to the infrastructure. More than 900 wide-range data points were considered to assess the reviewed jurisdictions.
The timing of that development happens to be significant. Henley claimed that on August 31, 2026, the worldwide market of cryptocurrency made $2.6 trillion and that Bitcoin provided $1.6 trillion. Just about 135,694 people globally became millionaires due to cryptocurrency, and 92,272 of them were Bitcoin millionaires.
Singapore has maintained its top position for four years in a row now. The country’s tax laws do not have any capital gains taxes as such, although the profits from cryptocurrency are taxable when they incur in the course of trading or business activities. Singapore is also preparing to implement the OECD Crypto-Asset Reporting Framework on January 1st, 2027.
The message from this ranking is clear and more relevant than ever: in the quest for cryptocurrency dominance, while tax systems offer some opportunities, it is regulation, business creativity, and the quality of investor infrastructure that will ultimately determine the outcomes.
