Dubai Court Change Stance on Crypto Payment for Salary

As a researcher with a keen interest in the intersection of law and technology, particularly blockchain and cryptocurrencies, this recent development in Dubai’s Court of First Instance is nothing short of exhilarating. Having closely followed the evolving legal landscape of digital assets for years, I can attest to the significant leap this decision represents.


In a groundbreaking move, the Dubai Court of First Instance has deemed it acceptable to pay salaries in cryptocurrency under employment contracts. This decision represents a notable advancement in the United Arab Emirate’s judicial treatment of digital assets. As per Irina Heaver, a partner at UAE law firm NeosLegal, this ruling in case 1739 of 2024 signifies a change from the court’s previous stance in 2023.

Court Turns Back on Employee

Previously, a court had rejected a comparable case primarily due to the undetermined value of the cryptocurrency. However, Heaver viewed this shift in stance as a “forward-thinking” strategy for incorporating digital currencies within the nation’s legal and financial system.

As a former employee who has faced similar situations, I can empathize with the plight of the worker in this case. Having experienced the frustration and anxiety that comes with not receiving promised compensation, I understand how important it is for employers to fulfill their obligations promptly and accurately. In this particular scenario, the employer’s failure to pay the token portion of the employee’s salary for six months could be seen as a breach of trust and a violation of the employment contract. The worker’s decision to file a lawsuit seeking wrongful termination compensation and other benefits is a reasonable response to such mistreatment. Employers must recognize that their actions have real-life consequences for their employees, and it is essential to prioritize fairness and transparency in all aspects of the employment relationship.

In 2023, the court recognized the digital assets as part of the employee’s salary, but didn’t force the crypto payment. The court suggested that the employee should have provided a clearer way to determine the value of the cryptocurrency in traditional money at the time. Heaver pointed out this was necessary for enforcement.

“The choice made here was rooted in a more conventional perspective, underscoring the importance of tangible proof when handling non-standard methods of payment.”

Improvement in UAE Crypto Payment Stance

In 2024, the court decided in favor of the employee and mandated that the employer pay the agreed-upon crypto salary directly, without converting it to traditional currency as specified in the employment contract. This forward-thinking decision suggests a growing recognition of cryptocurrency within employment agreements. This development not only benefits the employee in this instance but could potentially spark a significant transformation in Dubai’s Web3 sector.

Moreover, it underscores the court’s understanding that financial dealings in the Web3 economy are dynamic. In places such as New Zealand, cryptocurrency is already acknowledged as a valid means of receiving income and wages. It’s likely that other areas will follow suit in the coming times.

More and more industries and locations are finding ways to incorporate cryptocurrencies due to their increasing relevance. The launch of exchange-traded funds (ETFs) focused on Bitcoin and Ethereum has helped boost the visibility of these digital assets beyond just BTC and ETH. As a result, various governments have been putting time and resources into enhancing tax reporting for the cryptocurrency market.

In May, a new piece of software called FinTax was presented by the previous head of Bitmain and his colleagues. This groundbreaking software is designed to streamline the process of reporting taxes for cryptocurrency assets. With this software, calculating taxes related to cryptocurrencies becomes effortless. The primary beneficiaries are digital asset traders based in Hong Kong, who can now swiftly ascertain their tax obligations on both salaries and profits derived from digital currencies using this platform.

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2024-08-16 16:35