Today's Edition
ISIDORA CIRIC (ABU DHABI)
The UAE has entered the top tier of crypto destinations, placing fifth worldwide in the newly released Crypto Adoption Index 2025 with a score of 42.9 out of 60 - just 0.5 points behind the United States, which came in third overall, while Singapore topped the list.
The index, published by Henley & Partners as part of its annual Crypto Wealth Report, evaluates 29 jurisdictions across six pillars, and is designed for investors weighing residency options tied to digital-asset ecosystems.
The UAE dominated the list for Tax-Friendliness, the only country to receive the perfect score of 10. It also recorded 8.6 in Economic Factors, ahead of the US on that metric, 7.6 on Public Adoption - the second-highest score in the category - and 7.5 on Innovation and Technology, outpacing Switzerland in this pillar, which ranked fourth overall. Regulatory Environment follows at 5.8 and Infrastructure Adoption at 3.4.
”The UAE combines one of the most crypto-friendly tax environments with high levels of digital adoption, attracting both retail users and businesses,” the report said, adding that the country’s strong government backing “underpins a thriving ecosystem for blockchain innovation and financial services”.
Rules, Visas and the Build-out of a Market
Policy has moved in tandem with business formation. Dubai’s Virtual Assets Regulatory Authority - first-ever regulator exclusively for virtual assets - has produced a rulebook that attempts to corral trading venues, brokers, custodians and token issuers within a single supervisory perimeter. Abu Dhabi Global Market has advanced its own framework, giving founders a choice of jurisdictions within the country.
The approach extends beyond licensing. Dubai became an early testing ground for government blockchain applications through a partnership with IBM, exploring use cases from vehicle registration to business licensing. The Central Bank of the UAE approved a regulatory regime for dirham-backed stablecoins in June 2024, aligning the UAE with a global shift in how value moves over public networks. That sits alongside the Digital Dirham programme and mirrors broader developments such as Europe’s MiCA and US rules under the GENIUS Act.
“Perhaps the most comprehensive strategy for attracting crypto wealth is seen in the UAE, a crypto entrepreneur’s dream, with zero taxes on crypto trading, staking, mining, or selling across all seven emirates. But the appeal transcends mere tax optimisation,” Basil Mohr-Elzeki, Managing Partner at Henley & Partners North America, said in the report.
He explained that the success of the UAE’s playbook rests on three legs - regulation, company formation, and residency - and he name-checked real-world examples to show it in action.
The DMCC Crypto Centre now houses more than 650 blockchain firms. Dedicated visa tracks target tech entrepreneurs. The Golden Visa offers 10-year renewable residence, including through real-estate investment from Dh2 million, a timeframe that matches the build cycles of many token projects and infrastructure ventures. In wealth management, banks and advisers are building crypto-adjacent services at speed, with Mohr-Elzeki citing Arta’s work with Wio Invest in the UAE as an example of how platforms can roll out segment-specific offerings within months.
The New Map of Crypto Wealth
The UAE’s rise intersects with a broader change mapped in the Crypto Wealth Report 2025.
Henley & Partners and New World Wealth estimate that 241,700 people now hold at least $1 million in crypto assets, 450 are centi-millionaires, and 36 are crypto billionaires. The total market value of crypto reached around $3.3 trillion in June 2025.
Henley’s analysts add that 145,100 (60%) of crypto millionaires are Bitcoin-first and “increasingly pursue investment migration opportunities in jurisdictions like Malta and the UAE - nations that combine sophisticated financial infrastructure with forward-thinking digital asset frameworks”.
The report identified the UAE as the very top player in global millionaire migration tables, with projections suggesting a record net inflow of 9,800 high-net-worth individuals this year. The country also boasts the highest crypto ownership rate in the world, with nearly 30% of residents owning cryptocurrency.
Gen Z sits at the centre of that shift and sees the UAE as a place to build, not just bank gains - and they’re the fastest-growing slice of the crypto millionaire cohort.
“The emirates’ appeal is apparent: While capital gains taxes reach up to 42% in some European countries, the UAE imposes zero personal income tax or capital gains tax on individuals,” said Frederik Bussler, Gen Z owner of New York marketing firm Bussler & Co.
He added that yonder founders treat compliance as a feature. They incorporate in Abu Dhabi or Dubai, obtain residence, open accounts, hire tax counsel and keep tight records that counterparties and regulators can check.
Migration choices follow the same logic. Newcomers can move without a direct exit tax and time liquidity events once they hold UAE residence. Stablecoins help on day one by handling salaries and bills through wallets and crypto cards until banking is set.
What comes next is in the plumbing. If the dirham-backed stablecoin rules translate into live rails and VARA and ADGM keep licensing bank-grade custodians, token treasuries can deploy from the UAE with fewer frictions. Coupled with a growing cohort of young founders and an inbound millionaire stream, that starts to look less like positioning and more like market reality.
