Several UAE Residents Now Own Digital Currencies As Nation Ranks Third In Crypto Adoption Globally

(MENAFN- Khaleej Times) A substantial portion of UAE residents own digital currencies, a new study has found. Conducted by Henley and Partners, the study ranked the Emirates third globally in terms of crypto adoption.

The country has been ranked higher than the US, UK, Australia, Canada, Switzerland, New Zealand, Austria, Italy and others in terms of adoption of digital currencies. Singapore and Hong Kong have the highest adoption rates globally.

“The UAE stands out as a leading jurisdiction for crypto investors, ranking third in the Henley Crypto Adoption Index 2024. Public interest is high, with a substantial portion of the population owning cryptocurrencies. This enthusiasm is matched by strong government support and a thriving start-up scene. This low-tax jurisdiction offers an attractive environment for crypto businesses, further bolstered by a highly digitalised and wealthy population,” it said.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Cryptocurrency usage and adoption has been growing across different sectors such as retail, real estate and others. Earlier this month, a Dubai court in a landmark verdict also approved payment of salaries in cryptocurrency if the employer and employee mutually agree.

Additionally, Abu Dhabi Securities Exchange-listed Phoenix Group and digital asset firm Tether also announced a plan to launch a stablecoi pegged to the UAE dirham early next year to capitalise on the UAE currency's stability, growing demand for digital assets and tapping the global stablecoins market.

“The Middle East, particularly the UAE, continues to attract crypto wealth with its zero capital gains tax and progressive regulations. Dubai's long history of crypto-friendliness, including the approval of the first cryptocurrency fund in the Middle East in 2021, further solidifies its position as a leading destination for crypto investors. More recently, Dubai's allowance for residents to trade cryptocurrencies directly with their bank accounts is indicative of a significant step towards mainstream adoption,” said Dominic Volek, group head of private clients at Henley and Partners.

Public adoption measures the level of awareness, interest, and engagement with cryptocurrencies in the general population. It includes indicators such as the percentage of crypto users relative to the total population, as well as the number of crypto owners in absolute terms, and Google search interest related to cryptocurrencies. Higher public adoption indicates a more crypto-friendly environment.

Peter Ferrigno, director of tax services at Henley and Partners, said the UAE and the Cayman Islands are probably the“friendliest countries for crypto” because they tax neither capital gains nor income and they're the friendliest for every other asset class as well.

There are now 172,300 individuals worldwide holding over $1 million in crypto assets - a 95 per cent increase compared to last year - with the number of Bitcoin millionaires soaring by 111 per cent to 85,400, according to the Crypto Wealth Report 2024 published by leading international wealth and investment migration specialists Henley and Partners.

Andrew Amoils, head of research at New World Wealth, said the millionaire band performed best over the past year, while billionaire growth was much lower and mainly driven by Bitcoin.

“Of the six new crypto billionaires created over the past year, five came from Bitcoin, underscoring its dominant position when it comes to attracting long-term investors who buy large holdings,” he said.

ALSO READ:

• Salary in cryptocurrency: Will more UAE companies pay wages in e-cash?

• UAE: Firms announce plan to launch dirham-pegged crypto coin

• Dubai salary in crypto? Court orders company to pay employee's pay in dirhams, e-currency

MENAFN28082024000049011007ID1108609784