Case Overview: The ruling was based on case 1739 of 2024, in which an employee sued their employer for unpaid wages, seeking compensation for wrongful termination. The employee’s contract specified a monthly salary that included 5,250 EcoWatt tokens in addition to fiat currency. The employer, however, failed to pay the crypto portion of the salary for six months, leading to the lawsuit.
The court ruled in favor of the employee, ordering payment of the cryptocurrency portion of the salary as outlined in the contract without requiring conversion to fiat currency. This decision represents a departure from the court’s previous stance, which had denied the validity of crypto payments due to concerns over valuation methods.
Impact on the UAE Economy: The ruling is a milestone for the UAE’s digital economy, paving the way for broader acceptance of cryptocurrency in employment and other financial transactions. It underscores the country’s commitment to embracing the evolving nature of financial systems in the Web3 era, positioning the UAE as a leader in digital innovation.
This decision not only affirms the legal recognition of digital currencies in the UAE but also sets a precedent that could encourage other sectors to adopt cryptocurrency as a standard payment method.
