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The Dubai Court of First Instance has set a groundbreaking precedent by validating cryptocurrency as a legitimate form of salary payment under employment contracts. This decision, part of case number 1739 of 2024, marks a significant shift from the court’s previous stance, where crypto-based salary claims were rejected due to unclear valuation. The court now acknowledges the evolving role of digital currencies in the UAE’s legal and economic systems.
Irina Heaver, a partner at NeosLegal, highlighted that this ruling reflects a progressive approach toward integrating digital currencies into everyday financial transactions. The case involved an employee whose contract stipulated payment in both fiat currency and EcoWatt tokens. The court ruled in favor of the employee, enforcing the crypto payment as per the contract terms, without requiring conversion to fiat.
This decision is seen as a major step forward in the UAE’s push to become a leader in the digital economy, reinforcing the legal recognition of cryptocurrency in employment agreements.
