In a landmark judgment, the Dubai Court of First Instance, for the first time in the Middle East, has recognized a crypto currency to be paid against the salary payable under the employment contract, hence bringing about a revolutionary change in the legal stand of the UAE with regard to digital currencies.

Dubai Embraces Crypto for Salaries in Landmark Court Decision

The ruling, filed under case number 1739 of 2024, contrasted a similar claim in the year 2023 that was thrown out because of the lack of clear-cut valuation on the cryptocurrency. It revolved around a case where an employee sued for six months of wages owed to him, including 5,250 ecowatt tokens.

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In that respect, the 2024 decision by the court justified cryptocurrency as one form of payment, necessitating the packaging of clear contractual agreements. The judgment was in line with Article 912 of the UAE Civil Transactions Law, together with Federal Decree-Law No. (33) of 2021, and had a very progressive interpretation in tune with the fast-changing world of finance.

This judgment is bound to break more ground for wider acceptance of cryptocurrency in employment contracts across the UAE.