Dubai recognizes cryptocurrency as valid salary payment

Dubai's Court of First Instance has ruled that cryptocurrency can be used as valid payment for salaries under employment contracts, marking a significant shift in the UAE's legal approach to digital currencies.

The ruling came in a case where an employer failed to pay an employee's salary, which included a portion in EcoWatt tokens. Unlike a similar case in 2023 where the court denied enforcement due to lack of clear valuation, this time the court ruled in favor of the employee, ordering payment in crypto as stipulated in the contract.

UAE lawyer Irina Heaver noted that this decision signals growing acceptance of cryptocurrency in the country’s legal and economic systems, reflecting the evolving nature of financial transactions in the Web3 economy.