Dubai Court Breaks New Ground: Crypto Now Legal for Salary Payments
The Dubai Court of First Instance has officially recognized cryptocurrency in employment contracts for the purpose of salary payments
The Dubai Court of First Instance has officially recognized cryptocurrency in employment contracts for the purpose of salary payments. This ruling, case number 1739 of 2024, marks a significant departure from a 2023 judgment by the same court, where a similar claim involving cryptocurrency was denied.
The case was brought forth by an employee against an employer over unpaid wages, which were to be compensated for six months’ work in the sum of 5,250 EcoWatt tokens. According to the contract, the employee was due to receive a monthly fee in fiat money, which would always be supplemented by compensation in EcoWatt tokens. Because this cryptocurrency part of the salary never materialized, it gave rise to legal disputes.
In its ruling, the court acknowledged cryptocurrency as a valid form of remuneration, drawing on Article 912 of the UAE Civil Transactions Law and Federal Decree No. 33 of 2021. This decision underscores the UAE judiciary’s readiness to adapt to the growing acceptance and integration of digital currencies in various sectors.
