Positive Development in Dubai that Could Change the Status of Cryptocurrencies

The Dubai Court of First Instance has recognised cryptocurrencies as a legitimate form of payment for salaries, marking a significant shift in the UAE’s attitude towards digital currencies.

The decision, announced by law firm Wasel & Wasel, contrasts with a previous decision in 2023, when a similar request was rejected.

The case involved an employee who was wrongfully terminated and who was seeking unpaid wages, some of which were paid in EcoWatt tokens, a type of cryptocurrency. The employer argued that cryptocurrency payments were not legally enforceable, but the court ruled in the employee’s favor and ordered payment in EcoWatt tokens rather than conversion to fiat currency.

The move reflects the growing acceptance of cryptocurrencies in the UAE, particularly in Dubai, which has positioned itself as a global crypto hub. The city has established a regulatory framework for digital asset companies and offers an economic free zone with fewer restrictions.

The ruling was hailed as a landmark decision that sets a precedent for the wider use of cryptocurrencies across a variety of industries. The court’s ruling on crypto payments “underscores the importance of protecting contractual agreements” and will encourage greater integration of digital currencies beyond business contracts, law firm Wasel & Wasel said.

*This is not investment advice.