In a new legal development, the Dubai Court of First Instance has ruled that cryptocurrency payments in employment contracts are valid, marking a big shift in the United Arab Emirates’ stance on digital currencies.
It’s legal money
The case at the center of this ruling involved an employee who had not received the cryptocurrency portion of their salary for six months.
The court sided with the employee, emphasizing that the employment contract explicitly mentioned payment in cryptocurrency.
This ruling marks a departure from a similar case back in 2023, where the court rejected a claim like this, due to the unclear valuation of cryptocurrency. But now the situation is different.
In its 2024 decision, the court affirmed that wages are a fundamental right and must be honored as per the terms of the contract, regardless of whether they are in cryptocurrency or traditional currency.
If it’s in the contract, then it’s mandatory
This ruling contrasts with a previous case where the court dismissed a claim involving EcoWatt tokens, citing the lack of a clear method to determine their value in fiat currency.
The latest decision signals a clearer acceptance of digital assets by mandating that salary payments in cryptocurrency, as outlined in a contract, be honored without requiring conversion to fiat currency.
Clear rules, support for business
Dubai has been a pioneer in supporting cryptocurrency, starting with its 2016 Blockchain Strategy.
The city has since become an important hub for major crypto companies, including Binance and Crypto.com.
This court ruling further prove the status of cryptocurrency as a legitimate form of payment in the city, and in the UAE, making the region more appealing for the entrepreneurs.
Fair and viable decisions like this could setting a precedent for future employment contracts that may include digital assets as part of compensation.
