Cryptocurrency

Dubai

Coin

The&nbsp;<a href="https://www.thecoinrepublic.com/2024/06/24/blockchain-life-2024-to-take-place-in-dubai-as-the-peak-of-bull-run-is-coming/" rel="noopener noreferrer nofollow">Dubai</a>&nbsp;Court of First Instance has ruled that cryptocurrency can be used to pay salaries within employment contracts. This judgment could be considered a vital sign of the UAE opening up to cryptos in the country’s legal framework.
The facts in the case centered on an employee who sought to recover unpaid wages, which included part of the payment in EcoWatt tokens as provided in the employment contract.
<h2 class="wp-block-heading" id="h-dubai-court-validates-cryptocurrency-for-employee-salaries">Dubai Court Validates Cryptocurrency for Employee Salaries</h2>
The Dubai Court of First Instance, in case number 1739 of 2024, has taken a different approach than in the previous year, 2023.
Before, the court did not allow such payments due to the absence of the proper mechanism to estimate the equivalent fiat value. This time, the court decided in favor of the employee. To the extent that the employer must pay the crypto part without the need to convert it to fiat.
They increasingly use cryptocurrency as a form of payment, a sign that it is increasingly accepted as legal tender. This case shows that the court has been progressive in applying the contract.
Other laws regarding the use of digital currency in the UAE jurisdiction. This is especially the case as it points to the changes that are taking place in the Web3 economy regarding financial transactions.
<h2 class="wp-block-heading" id="h-uae-court-ruling-supports-digital-currency-adoption">UAE Court Ruling Supports Digital Currency Adoption</h2>
The court ruling was made based on the&nbsp;<a href="https://www.lexology.com/library/detail.aspx?g=ca02d70f-8cea-419d-82f1-65ad7bcadd28" rel="noopener noreferrer nofollow">UAE Civil Transactions Law</a>&nbsp;and Federal Decree-Law No. 33 of 2021 to ensure consistency in applying legal norms.
The judgment holds that employment agreements can be enforced irrespective of the digital currency. This case, therefore, provides a good foundation for the acceptance of digital currencies in the future conduct of business.
Legal scholars believe that this decision will lead business entities to devise other new ways of processing payments.
The court’s acceptance of cryptocurrency payments has provided a boost to crypto payments. It has also opened up the UAE economy to a wider and more diversified future.
This ruling may also contribute to the expansion of the application of digital currencies in different fields, which supports the vision of the UAE to be a global capital for the future economy.
<h2 class="wp-block-heading" id="h-uae-supports-legal-framework-for-crypto-payments">UAE Supports Legal Framework for Crypto Payments</h2>
This decision is great for employees and shows that the UAE is willing and prepared for such economic changes. Thus, providing a legal framework for digital currencies is essential as they are increasingly used as payment methods. This court decision may lead other jurisdictions to follow the same path on the admissibility of cryptocurrency payments.
The decision also supports the proposition that contractual provisions in employment contracts should be precise. Employers should, therefore, ensure that the mode of payment, whether fiat or cryptocurrency, is clearly stated and understood. This decision will probably affect how companies write employment contracts, especially in the most advanced sectors that embrace digitization.
The post <a href="https://www.thecoinrepublic.com/2024/08/16/crypto-payments-for-salaries-now-approved-in-dubai/" rel="noopener noreferrer nofollow">Crypto Payments for Salaries Now Approved in Dubai</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.

Crypto Payments for Salaries Now Approved in Dubai

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