𝗗𝘂𝗯𝗮𝗶 𝗖𝗼𝘂𝗿𝘁 𝗩𝗮𝗹𝗶𝗱𝗮𝘁𝗲𝘀 𝗖𝗿𝘆𝗽𝘁𝗼 𝗦𝗮𝗹𝗮𝗿𝘆 𝗣𝗮𝘆𝗺𝗲𝗻𝘁: 𝗔 𝗡𝗲𝘄 𝗟𝗲𝗴𝗮𝗹 𝗣𝗿𝗲𝗰𝗲𝗱𝗲𝗻𝘁

On July 17, the Dubai Court of First Instance established a notable legal precedent by acknowledging cryptocurrency as a valid form of salary payment. The court ordered an employer to pay an employee’s overdue salary in both fiat currency and a specified amount of EcoWatt Tokens (EWT), i.e., a cryptocurrency which operates on the Ethereum blockchain.

The case centered on an employment contract that stipulated a monthly salary in fiat currency with additional compensation in EWT. The plaintiff alleged that the employer failed to pay the agreed-upon portion of their salary in EWT and wrongfully terminated their employment.

𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗦𝗮𝗹𝗮𝗿𝗶𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗔𝗘

This raises questions about the feasibility of using cryptocurrencies as a regular payment method in the UAE, particularly in light of the Wage Protection System (WPS) regulations.

However, the Central Bank of the UAE’s recent Payment Token Services Regulations indicate that more practical uses for cryptocurrencies could soon emerge.

As this regulatory landscape evolves, it is essential for both employers and employees to clearly define the terms of any cryptocurrency salary payments to ensure effective enforcement.

While this ruling is not a full endorsement of cryptocurrency salary payments, it does reflect the UAE’s progressive stance and openness to exploring the broader integration of cryptocurrencies into employment contracts.

If you wish to learn more about regulations relating to cryptocurrency and how they might impact your business, get in touch today.