Dubai Court officially approves cryptocurrency payments for salaries, enhancing its stance on digital currencies.
The ruling marks a shift from previous legal requirements, reflecting increased acceptance of crypto in wage agreements.
Irina Heaver highlights the decision’s alignment with UAE laws, potentially driving broader use of cryptocurrencies in financial transactions.
In a recent ruling, the Dubai Court of First Instance has officially verified cryptocurrency payments as a legal form of salary compensation under employment contracts. This ruling aligns with Dubai's support of digital currencies and highlights its position as a fair global crypto space leader.
Court Ruling Overview
The ruling, detailed in case number 1739 of 2024, marks a significant departure from the court’s previous position. Mario Nawfal, an account behind Crypto and Web3 on the X platform, confirmed the announcement.
https://twitter.com/RoundtableSpace/status/1824403815279538396
Last year, a similar case involving cryptocurrency payments was dismissed due to the lack of a straightforward method for valuing digital currency. The court's earlier decision reflected the traditional legal requirement for precise valuation methods when dealing with unconventional payment forms.
The current case involved an employee whose contract included a monthly salary in fiat currency and 5,250 EcoWatt tokens. The dispute emerged when the employer failed to deliver the token portion of the salary over six months. Although the court acknowledged the presence of EcoWatt tokens in the contract in 2023, it did not enforce payment in crypto due to valuation issues.
Court’s Ruling and Its Implications
In 2024, the court ruled in favor of the employee, mandating payment of the cryptocurrency salary as specified in the contract without conversion into fiat. This decision reflects an evolving acceptance of cryptocurrency in employment contracts and indicates the court's adaptation to new financial technologies driven by the Web3 sector.Irina Heaver, a partner at NeosLegal, pointed out that the ruling aligns with UAE Civil Transactions Law and Federal Decree-Law No. 33 of 2021. This consistency in applying legal principles ensures that digital currencies can now be integrated into wage agreements effectively. Heaver anticipates that this ruling will encourage broader use of cryptocurrencies in financial transactions, fostering a more inclusive business environment.
The post Dubai Court Embraces Crypto Salaries: Legal Validation for Digital Payments appeared first on Crypto News Land.