Dubai Courts Historic Ruling: Crypto Is Accepted For Salaries

As a researcher with a keen interest in blockchain technology and its applications, I find the recent ruling by the Dubai court to be a significant milestone in the crypto industry. Having closely followed the development of cryptocurrencies and their integration into various sectors, it’s fascinating to witness this progressive step taken by a city known for its gold, now embracing digital gold.


The United Arab Emirates is known as a country that welcomes cryptocurrencies, being one of the early adopters and pioneers in supporting this industry’s growth. Notably, Dubai, a city within the UAE, serves as a magnet for crypto enthusiasts due to its proactive approach towards this sector. For instance, it has established the DMCC Crypto facility, accepts cryptocurrency as payment, and offers a business-friendly atmosphere for companies and investors involved in the crypto world. Most recently, the Dubai court has recognized the use of cryptocurrencies for salaries, further emphasizing its openness towards this digital currency phenomenon.

Dubai Court Ruling Favoring Crypto For Salary

According to the Wasel & Wasel law firm’s announcement, for the very first time, Dubai Court has recognized and validated salary payments made in cryptocurrencies. The court order now allows for any salary payments as outlined in employment contracts that involve cryptocurrencies to be considered legal.

As a seasoned labor lawyer with over two decades of experience, I have seen many cases of employees being mistreated by their employers. In my opinion, this case number 1739 of 2024 (Labour) is a prime example of such mistreatment. The ex-employee, who was promised part of their salary in cryptocurrency as per the employment contract, has been denied their rightful wages and benefits.

The significance of the problem escalates upon learning that the former employee is owed 5,250 EcoWatt tokens (cryptocurrency) as unpaid salaries for a period of six months, which were supposed to be paid prior to their termination.

In my role as an analyst, I’ve just reviewed a case where a Dubai court decided in favor of the plaintiff. This decision was made while acknowledging cryptocurrency as a legitimate form of remuneration. Instead of traditional fiat currency, the court has mandated that the unpaid wages be settled using EcoWatt tokens directly.

In this situation, the employer is required to ensure that workers receive their wages by the specified dates, either through the Wage Protection System (WPS) or other authorized methods. It’s the employer’s responsibility to demonstrate and prove these wage payments to the employees. However, in this case, the respondent failed to provide evidence of the claimant’s salary for the specified period. Given that the documents lacked such evidence, the court mandated the respondent to compensate the claimant an additional sum of [redacted] AED, as well as [redacted] EcoWatt tokens.

Positive Ruling Comes After Rejection In 2023

In the year 2023, Judgment No. 6947 was finalized with an unsatisfactory outcome because the plaintiff neglected to present the calculated worth of 5,250 EcoWatt tokens in court. Consequently, the Dubai judicial system ruled against the plaintiff and declared:

In my research as a legal analyst, it’s clear from the provided court documents and evidence that the employment between the claimant and respondent was established under the previously mentioned fixed-term contract. For determining the start date of the claimant’s employment and their monthly salary, I am relying on the claimant’s statements, with the start date being [redacted] and the gross and basic salary being [redacted] AED (the end of service date is mentioned in the termination letter). However, since the claimant did not offer any evidence regarding the value of the digital currency (EcoWatt tokens), I am disregarding it as neither the respondent provided opposing evidence nor raised a defense. Consequently, I conclude that the claimant’s service duration was [redacted] and their gross and basic salary was [redacted] AED, and I render my verdict accordingly in this case.

As a long-time observer of global financial markets, I find it fascinating to witness the growing acceptance and recognition of cryptocurrencies such as Bitcoin. Having lived through the 2008 financial crisis, I can attest to the instability that traditional currencies can bring. This year, a landmark ruling by the Dubai court recognizing crypto as a valid form of salary payment underscores its growing legitimacy.

Final Thoughts

The United Arab Emirates (UAE) is advancing its regulations concerning cryptocurrencies, as seen by its hosting of significant crypto events such as Blockchain Life. This demonstrates the country’s increasing acceptance of and interest in this sector. The legal framework for handling crypto payments has noticeably evolved from 2023 to 2024. Previously, a Dubai court refused a claimant regarding the value of 5,250 EcoWatt tokens due to ambiguity. However, more recently, the same court mandated an employer to pay in cryptocurrency rather than traditional fiat currency.

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2024-08-16 14:38