The UAE judiciary is embracing the future, especially when it comes to cryptocurrencies. In a groundbreaking decision, the Dubai Court of First Instance has ruled that cryptocurrency can be a valid form of salary payment under employment contracts. This is a big deal and marks a significant shift in the United Arab Emirates’ (UAE) legal approach to digital currencies.
The Case History
In 2023, (Judgment No. 6947 of 2023) an employment dispute case came to the court. This case involved an employee with a work contract to get payment in fiat and 5350 EcoWatt tokens monthly. However, the employer did not pay the crypto part for over six months. The court acknowledged crypto being in the contract, however did not force the employer to pay because the employee failed to provide a clear method to calculate the crypto in terms of fiat.
New Judgement Embracing Crypto
A similar case (number 1739 of 2024) appeared in court in 2024. This time the Dubai court displayed a progressive stance towards crypto in wages. The court ruled in favor of the employee and ordered the payment to be made in EcoWatt tokens instead of its fiat value. It stated that according to the Article 912 of Civil Transaction Law, the wages are a right of the workers against their hard work.
The Global Impact
This ruling made a pavement for getting crypto as payment if stated in the work agreement. This case demonstrates that Dubai is serious about staying at the forefront of digital currencies. And why wouldn’t they be? Dubai has become a global hub for crypto companies, with nearly every major player in the industry setting up shop here. Crypto influencers from all over the world are flocking to Dubai to enjoy its crypto-friendly ecosystem.
It’s worth noting that while El Salvador has made Bitcoin a legal tender, allowing payments for everything from groceries to wages, Dubai hasn’t gone that far. But by making crypto wages legal, Dubai is setting an example that the rest of the world might just want to follow.
Setting up a new Landscape
The Dubai Court’s ruling in favor of crypto wages shows that UAE is not only embracing digital innovation but leading the way for the world to follow. The shift in Court’s stance from 2023 to 2024 shows how fast UAE adapts to the new technology and merge it with their current systems. It is clear that this ruling will definitely encourage other countries to broaden the use of cryptocurrencies in their financial systems.
Also Read: Crypto Regulations in UAE 2024 – Dubai: The Next Crypto Capital?