Dubai Court Validates Cryptocurrency for Salaries

The Dubai Court of First Instance has made a landmark ruling, recognizing cryptocurrency as a valid form of salary payment under employment contracts. This decision emerged from case number 1739 of 2024, where an employee sued their employer for failing to pay over 5,000 EcoWatt tokens, a part of their contractual salary, for six months. The court ruled in favor of the employee, ordering the employer to pay the due amount in EcoWatt tokens without converting them into fiat currency.

This ruling marks a significant shift in the UAE's judicial approach to digital currencies in employment contracts. Previously, the court had not enforced similar claims due to the lack of precise valuation methods for cryptocurrencies. The decision is viewed as a progressive step towards integrating digital currencies into the country's legal and economic framework. Legal professionals have praised the ruling, noting it reflects a broader acceptance of cryptocurrency and could encourage more businesses to consider digital currencies for transactions.