The UAE has emerged as one of the world’s most attractive destinations for crypto investors, securing a spot among the top five global crypto-friendly jurisdictions in the 2025 Crypto Wealth Report by Henley & Partners. With a perfect tax score, robust government support, and an expanding blockchain ecosystem, the Emirates is drawing in a fast-growing population of digital millionaires in search of financial freedom and regulatory clarity.
UAE’s zero tax advantage and leading crypto adoption
The UAE received a perfect score of 10 for tax-friendliness in the Henley Crypto Adoption Index, thanks to its zero tax policy on cryptocurrency trading, staking, mining, and selling across all seven emirates. This makes the UAE the world’s most tax-friendly country for cryptocurrencies, tied only with Monaco in this metric.This tax structure is particularly attractive to high-net-worth individuals (HNWIs) and crypto entrepreneurs looking to maximise capital gains without regulatory overhead. As a result, the UAE now ranks among the top five crypto destinations globally, alongside Singapore, Hong Kong, the USA, and Switzerland.The UAE also ranked:
- Second globally for crypto adoption, behind only the US
- Fourth in innovation and technology, highlighting its digital readiness
The Henley Crypto Adoption Index evaluated 29 investment migration programs across six parameters:
- Public adoption
- Infrastructure adoption
- Innovation and technology
- Regulatory environment
- Economic factors
- Tax-friendliness
The report recognised the UAE as a leading example of a government actively enabling crypto ecosystems to flourish.“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 stated.
Strategic government support: VARA, digital Dirham , and golden visa programs
The UAE’s crypto ascent is not based on tax policy alone. It is underpinned by intentional, long-term regulatory frameworks and national programs aimed at supporting blockchain growth.Key Initiatives:
- Dubai Virtual Assets Regulatory Authority (VARA): Established in 2022, this was the world’s first regulator exclusively for virtual assets, offering a dedicated framework for digital asset governance.
- DMCC Crypto Centre: Located in Dubai Multi Commodities Centre, it houses over 650 blockchain companies, making it a key innovation cluster.
- Central Bank’s Digital Dirham Program: Supports the adoption of central bank digital currencies (CBDCs) and broader digital finance integration.
Residence incentives:
UAE Golden Visa : Offers 10-year renewable residence permits for investors, including those committing at least Dh2 million in real estate investment.- Dedicated visa tracks for tech entrepreneurs enhance the UAE’s appeal to long-term crypto builders and blockchain-focused businesses.
“Dubai is a desert oasis for digital assets,” said Basil Mohr-Elzeki of Henley & Partners. “The UAE has perhaps the most comprehensive strategy for attracting crypto wealth.”
Global surge in crypto wealth and UAE’s investor influx
The 2025 Crypto Wealth Report outlines a dramatic surge in global crypto wealth, with the number of crypto millionaires climbing to 241,700 individuals, marking a 40% increase in just 12 months.Breakdown of Key Figures:
- Bitcoin millionaires rose by 70% YoY, now totaling 145,100 individuals
- Crypto centi-millionaires (portfolios of $100M+) grew by 38%, now numbering 450
- Crypto billionaires increased to 36 individuals, up 29% from last year
- Global crypto market valuation hit $3.3 trillion as of June 2025, a 45% jump year-on-year
The UAE benefits directly from this new wealth class. As explained by Dominic Volek, Group Head of Private Clients at Henley & Partners:“Cryptocurrency has made geography optional — with nothing more than 12 memorised words, an individual can secure a billion dollars in Bitcoin, instantly accessible from Zurich or Zhengzhou alike.”This mobility has created a wave of crypto investors seeking jurisdictions that combine favourable tax environments, regulatory clarity, and geographic flexibility — making the UAE an ideal destination.Frederik Bussler, founder of Bussler & Co., noted that nearly 30% of UAE residents now own cryptocurrencies, the highest rate globally.
UAE among global leaders in crypto migration and digital economy
The growing link between digital wealth and citizenship/residence by investment (CBI/RBI) has placed the UAE in a strong competitive position.“This mobility-driven class of investors is increasingly turning to citizenship by investment programs as a strategic route to geographic and financial flexibility,” said Catherine Chen, Head of VIP & Institutional at Binance.The UAE’s CBI-friendly programs, combined with a world-class digital infrastructure, make it a strategic destination for this evolving class of investor.Comparative Regional Trends:
- Singapore: Leads the global index due to exceptional infrastructure and regulatory scores
- Thailand: Introduced a five-year capital gains tax exemption for crypto trading
- Malaysia: Advancing fintech through Digital Free Trade Zone initiatives
These developments underline a growing international trend: governments are adapting their financial and regulatory systems to attract digital wealth. Yet the UAE stands out for its early, structured, and comprehensive adoption of crypto-enabling policies.
