Dubai Court Validates Crypto Salaries, Paving Way for Digital Wages 

• Dubai Court recognizes cryptocurrency as a legitimate form of salary payment, paving the way for broader acceptance in employment contracts.

• The ruling reflects UAE’s commitment to embracing digital innovation and positioning itself as a global hub for cryptocurrency businesses.

• This decision may influence other countries to reconsider their stance on cryptocurrency use in financial systems and employment practices.

The Dubai Court of First Instance has made a landmark decision, ruling that cryptocurrency can be used as a valid form of salary payment in employment contracts. This significant move marks a shift in the United Arab Emirates’ (UAE) legal approach to digital currencies and reinforces Dubai’s position as a leading crypto-friendly jurisdiction.

Legal Precedent Set for Crypto Wages

In a recent case (number 1739 of 2024), the Dubai court displayed a progressive stance towards cryptocurrency in wages. The court ruled in favor of an employee, ordering the employer to pay outstanding wages in EcoWatt tokens as stipulated in the employment contract. This decision was based on Article 912 of the Civil Transaction Law, which recognizes wages as a right of workers in exchange for their labor.

This ruling contrasts with a similar case from 2023 (Judgment No. 6947 of 2023), where the court acknowledged the inclusion of cryptocurrency in an employment contract but did not enforce payment due to the employee’s failure to provide a clear method for calculating the crypto’s fiat value.

Dubai’s Growing Crypto Ecosystem

The court’s decision aligns with Dubai’s efforts to establish itself as a global hub for cryptocurrency companies. Many major players in the industry have set up operations in the emirate, attracted by its crypto-friendly environment and progressive regulatory approach.

Although it does not make cryptocurrency legal tender, such as Bitcoin in El Salvador, this ruling paves the way for paying salaries in digital coins under an employment contract. The move also could prompt other jurisdictions to rethink their stance on the use of digital assets in financial systems and employment relationships.

In 2024, the shift from 2023 by the court reflects UAE’s speed in embracing and regulating emerging technologies within its old legal structures. This swiftness to adopt digital innovations will place UAE among global leaders for virtual currency use.