The Dubai Court of First Instance has declared that cryptocurrency is a legitimate form of salary under employment contracts. This decision, which came from case number 1739 of 2024, heralds a major change in the United Arab Emirates’ legal perspectives on digital currencies.

A Dubai court has recognized #cryptocurrency as a legitimate form of payment for salaries, marking a significant legal milestone. This ruling is expected to bolster the use of digital currencies in the region, particularly in sectors like finance and technology.

— Satoshi Talks (@Satoshi_Talks) August 16, 2024

The case that led to this historic ruling was an employment dispute where the complainant, an employee, demanded unpaid wages, compensation for wrongful termination, and other benefits. The employment contract specify a monthly salary, part of which was to be paid in fiat currency and part in 5,250 EcoWatt tokens, a type of cryptocurrency. When the employer failed to pay the cryptocurrency portion of the salary over six months, the employee took legal action.

The Ruling is A Forward-Thinking Decision

In its 2024 decision, the Dubai Court of First Instance ruled in favor of the employee, acknowledging the legitimacy of the cryptocurrency payment as stated in the employment contract. The court instructed the employer to meet the contractual obligation to pay the salary in EcoWatt tokens without converting the payment into fiat currency. This judgment marks a significant shift from the court’s previous position in a similar case in 2023, where the claim for cryptocurrency wages was rejected due to the absence of a clear method for valuing the tokens.

Irina Heaver, a partner at UAE law firm NeosLegal, commented on the ruling, saying, “This decision reflects a wider acceptance of cryptocurrency in employment contracts and underscores the court’s recognition of the evolving nature of financial transactions within the Web3 economy.” She added that the ruling is a key acknowledgment of how value is created and shared in the Web3 space, where it is typical for employees to be compensated with a mix of fiat and project tokens.

The Ramifications

Heaver believes that the decision also establishes a positive precedent that promotes the further integration of digital currencies in everyday financial transactions. The lawyer thinks that this encourages a more inclusive and innovative business environment. Heaver stated: “This ruling confirms that if an employment contract includes such terms, both the company and the employee are obliged to honor them.”

The post UAE Court Makes History, Recognizes Crypto as Legitimate Salary Payment appeared first on Coinfomania.