Dubai Court of First Instance confirmed the legality of cryptocurrency payments for salaries. This ruling marks a significant step in the United Arab Emirates’ approach to digital currencies, including Bitcoin.
The case, identified as 1739 of 2024 (Labour), centered on an employee who filed a complaint over unpaid wages and wrongful termination. According to the employment contract, the employee was entitled to payment in both traditional fiat currency and 5,250 EcoWatt tokens.
The court sided with the employee, ordering the employer to settle the unpaid wages in EcoWatt tokens. The employer had argued that crypto payments were not legally enforceable, but the court found the contract’s terms to be valid and enforceable.
This ruling stands in contrast to a similar case from 2023, where a claim involving EcoWatt tokens was dismissed due to a lack of clear valuation. The latest decision reflects the court’s evolving perspective on digital currencies, signaling a potential shift toward broader acceptance of crypto in various sectors, including employment.
Meanwhile, In Pakistan crypto trading and bitcoin is considered illegal.
It is unfortunate that our policy makers are not well-informed about the cryptocurrencies and trading, the world has changed and policy makers cannot stop this change by declaring something illegal.
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