UAE breaks into top 5 global crypto hubs; perfect tax score attracts digital millionaires

24/09/2025 03:57 AST

The UAE has earned a spot among the world's top five crypto-friendly investment destinations as global cryptocurrency millionaires surge to record 241,700 individuals.

The UAE has secured a position among the world's five most crypto-friendly jurisdictions for wealthy investors, according to the newly released Crypto Wealth Report 2025 by Henley & Partners, a global advisory firm specialising in residence and citizenship.

The UAE achieved this ranking as the global count of crypto millionaires jumped by a remarkable 40 per cent in just 12 months.

The UAE scored a perfect 10 for tax-friendliness in the Henley Crypto Adoption Index, thanks to its zero taxes on cryptocurrency trading, staking, and mining activities. This places the Gulf nation alongside Singapore, Hong Kong, the USA, and Switzerland as top destinations for high-net-worth individuals seeking crypto-friendly environments.

"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 read.

Strong government backing, including Dubai's Virtual Assets Regulatory Authority and the Central Bank's Digital Dirham programme, underpins the emirates' thriving blockchain ecosystem.

According to the report, the UAE combines one of the most crypto-friendly tax environments with high levels of digital adoption, attracting both retail users and businesses.

The Henley Crypto Adoption Index evaluated 29 investment migration programs across six key parameters: Public Adoption, Infrastructure Adoption, Innovation and Technology, Regulatory Environment, Economic Factors, and Tax Friendliness.

Surge in crypto wealth
The global surge in crypto wealth has created an unprecedented new class of investors. Bitcoin millionaires alone increased by 70 per cent year-on-year to 145,100 holders, while the total crypto market valuation reached $3.3 trillion as of June 2025 - a 45 per cent jump from the previous year.

Dominic Volek, Group Head of Private Clients at Henley & Partners, said, "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."

The report reveals that 450 centi-millionaires now control crypto portfolios worth $100 million or more, representing a 38 per cent increase since last year. In contrast, the number of crypto billionaires has climbed to 36 individuals, marking a 29 per cent increase.

Andrew Amoils, Head of Research at New World Wealth, explained, "High-net-worth individuals with significant crypto holdings are among the most globally mobile, underscoring the strong link between cryptocurrency and cross-border wealth flows."

The UAE's strategic positioning benefits from this trend. Catherine Chen, Head of VIP & Institutional at Binance, said "This new, mobility-driven class of investors is increasingly turning to citizenship by investment programs as a strategic route to geographic and financial flexibility."

Other regional performers include Singapore, which leads with exceptional infrastructure and regulatory scores, while Thailand has announced a five-year capital gains exemption for crypto trading. Malaysia is building fintech capabilities through Digital Free Trade Zone initiatives.

Volek added, "The rise of cryptocurrency has democratized capabilities once reserved for the ultra-wealthy, empowering individuals to take control of their wealth on a global scale."

Gulfnews