Dubai Court Approves Crypto Payments for Salaries

In a notable shift, the Dubai Court of First Instance has validated the use of cryptocurrency for salary payments in employment contracts.

This decision, made on August 15, 2024, marks a significant update in the UAE’s approach to digital currencies.

Irina Heaver from NeosLegal highlighted that this ruling contrasts with a 2023 case where a similar claim was denied due to unclear valuation of the cryptocurrency involved.

The new ruling recognizes the legality of paying salaries in both fiat and digital tokens, reflecting a more progressive stance on cryptocurrency integration.

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The case in question involved an employee who claimed unpaid wages that included both cash and EcoWatt tokens. Previously, the court had not enforced payment in crypto due to valuation issues, but this time it upheld the contract terms, allowing payment in the specified tokens.

This development sets a precedent for the use of cryptocurrencies in employment contracts and indicates the UAE’s growing acceptance of digital financial transactions.

It also emphasizes the importance of honoring contract terms, whether in traditional currency or digital assets, marking a step forward in the UAE’s digital economy evolution.

Alexander Stefanov