UAE takes second place in crypto adoption index, but its Turkey and Bahrain that make strides
What changed over the past year to push the UAE from fifth place to second, just behind Singapore, in the Henley Crypto Adoption Index 2026? The shift was driven by gains in infrastructure adoption, which rose from a score of 3.4 in 2025 to 4.6 in 2026, as well as innovation and technology, which climbed from 7.6 to 8.9.
The UAE was not the only major mover in the report. Turkey rose by 10 positions, while Bahrain entered the top 36 countries for the first time.
Returning to the UAE, one of the biggest improvements was in the regulatory environment. In 2025, the UAE’s score was 5.8; in 2026, it rose to 7.3. This may reflect the growing number of regulatory bodies and licenses now available in the country, including those linked to the Capital Market Authority, DIFC, ADGM, VARA Dubai, and the Central Bank of the UAE, as well as recent rules on stablecoin payments and licenses for payment and wallet providers, including Crypto.com and stablecoins such as AE Coin.
The UAE maintained its tax-friendliness score of 10 in both 2025 and 2026, but fell on the economic factors parameter. This parameter assesses a country’s stability and economic conditions by evaluating financial inclusion, smartphone and internet penetration, and broadband speed, based on Henley & Partners’ analysis of the Speedtest Global Index™. These indicators help determine whether a country has the economic stability and technological accessibility needed to support crypto adoption.
Yet despite these improvements, public crypto adoption in the UAE remained unchanged, standing at 7.6 in both 2025 and 2026. Does this suggest that public adoption has slowed in the UAE, even as the country continues to invest in regulation, infrastructure, and innovation?
Despite this, the UAE moved forward in the ranking, pushing Hong Kong to third place, the United States to fourth, and Switzerland to fifth.
Bahrain ranked 13th, with a public adoption score of 6, an infrastructure adoption score of 1.6, and an innovation and technology score of 3.5. Its regulatory environment score, however, stood at 8. It should be noted that Bahrain introduced stablecoin regulation in 2025. What is often overlooked is that Bahrain is also one of the most tax-friendly destinations for crypto, with a score of 10, just like the UAE.
The biggest jump came from Turkey. In 2025, it ranked 23rd; this year, it took 14th place. Chainalysis reported $200 billion worth of crypto transactions in Turkey in 2025. So what changed? While public adoption declined, infrastructure adoption scored higher, as did innovation and technology. Most importantly, the country’s regulatory environment improved, and Turkey also became more tax-friendly.
The only country in Henley’s top 36 to receive a full score for public crypto adoption was the United States, which scored 10 out of 10 after posting 7.2 in 2025. This can be attributed to a more crypto-friendly political environment and moves to regulate the sector through the Genius Act and the Clarity Act.
The Henley Crypto Adoption Index suggests that countries in the MENA region, including the UAE, Bahrain, and Turkey, are becoming important hubs for crypto adoption, innovation, and regulation. While Singapore still holds the top position, the gains made by other countries show that the ranking could shift in the years ahead.
In the final analysis, it has not been an easy year for crypto. In Henley’s Crypto Wealth Report 2026, the number of individuals holding more than $1 million in crypto assets fell to 135,694, down from 241,700 in 2025. The number of crypto centi-millionaires holding more than $100 million also declined, dropping to 290 in 2026 from 450 in 2025. The number of crypto billionaires fell as well, from 36 in 2025 to 23 in 2026.
Even in terms of crypto market value, the sector declined from $3.3 trillion in 2025 to $2.6 trillion in 2026, of which $1.6 trillion is held in Bitcoin. Yet the number of crypto holders rose, offering a positive counterpoint: in 2026, there were 742 million crypto holders compared with 590 million in 2025. Half of all crypto holdings were in Bitcoin.
