Blockchain
Dubai crypto salary payment landmark decision for digital currency adoption as a valid salary payment
The recent ruling by the Dubai Court of First Instance, allowing cryptocurrency to be used as a valid form of salary payment under employment contracts, marks a significant development in the legal and financial landscape of the United Arab Emirates (UAE). This landmark decision, issued under case number 1739 of 2024, represents a shift in the UAE judiciary’s approach towards digital currencies, signaling broader acceptance and integration of blockchain technology into the country’s economic and legal frameworks.
Key Aspects of the Ruling
1. Recognition of Cryptocurrency in Employment Contracts:
– The court ruled in favor of an employee whose contract included a salary partly in EcoWatt tokens, despite the previous year’s decision that rejected a similar claim due to difficulties in valuing the cryptocurrency in fiat terms. This ruling reflects a more progressive stance, acknowledging the contractual agreement to pay in cryptocurrency as legally binding without requiring conversion to fiat currency.
2. Legal Foundations:
– The ruling is grounded in the UAE Civil Transactions Law and Federal Decree-Law No. 33 of 2021, which regulate employment and contractual agreements. The court’s decision demonstrates the UAE’s commitment to modernizing its legal framework to accommodate emerging financial technologies, such as cryptocurrency.
3. Implications for Employers and Employees:
– Employers and employees in the UAE must now consider the volatility of cryptocurrencies when drafting and agreeing to salary contracts. The ruling emphasizes that both parties are bound by the terms of their contract, whether payments are made in fiat currency or cryptocurrency.
– This shift requires updates to existing payroll systems and accounting processes to handle crypto transactions, necessitating investment in new technologies and compliance measures by UAE companies.
Challenges and Considerations
The ruling, while groundbreaking, also introduces challenges:
– Volatility: Cryptocurrencies are known for their price volatility, which could affect the stability of wages. Employees and employers must be prepared for fluctuations in the value of crypto-based salaries.
– Regulatory Compliance: Companies may need to upgrade their payroll systems to handle cryptocurrency transactions, which could involve significant financial and technological investments.
Broader Impact and Future Implications
The Dubai crypto salary payment ruling could pave the way for greater acceptance of cryptocurrencies in employment contracts globally. As one of the first jurisdictions to legally recognize cryptocurrency as a valid form of salary payment, the UAE is positioning itself at the forefront of the digital economy. This decision could set a precedent for other countries to follow, potentially accelerating the integration of cryptocurrencies into mainstream financial and legal systems.
The ruling also highlights the UAE’s commitment to fostering an innovative and dynamic economy, adapting to new financial technologies, and setting a global standard in modern financial practices and employment legislation.
Source: deythere.com
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Blockchain
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Blockchain
This Week in Finance News: 11 Stories You Need to See
With thousands of press releases published each week, it can be difficult to keep up with everything on PR Newswire. To help finance journalists and consumers stay on top of the week’s most newsworthy and popular releases, here’s a recap of some major stories from the week that shouldn’t be missed.
The list below includes the headline (with a link to the full text) and an excerpt from each story. Click on the press release headlines to access accompanying multimedia assets that are available for download.
- Prosperity or catastrophe: #Insurance2040 study reveals four possible futures for the industry
By 2040, technological innovation driven by customer centricity could pave the way to greater climate resilience and more personalized offerings by the insurance industry. Alternatively, insurance could become a luxury afforded only to the wealthiest few. - Cardinal Health announces two strategic additions to its portfolio
Cardinal Health will acquire a majority stake in GI Alliance (GIA), the country’s leading gastroenterology (GI) management services organization (MSO), from a combination of GIA physician owners and funds managed by affiliates of Apollo. Cardinal Health will also acquire the Advanced Diabetes Supply Group (ADSG), one of the country’s leading diabetic medical supplies providers, for approximately $1.1 billion in cash. - BlackRock Launches New BUIDL Share Classes Across Multiple Blockchains to Expand Access and Potential of BUIDL Ecosystem
This initiative represents the next step in the evolution of the tokenization market, by enabling BUIDL to be used within leading blockchain-based financial products and infrastructure across ecosystems. - Primo Brands Corporation Announces Successful Completion of Merger of Primo Water and BlueTriton Brands
“I believe Primo Brands is positioned to be a leader in the healthy hydration beverage category, thanks to the strength of its iconic, sustainably-sourced brands, its robust operations and extensive North American network, and its responsible operation of numerous springs across the country,” said Dean Metropoulos, Non-Executive Chairman of the Board of Directors of Primo Brands. - Jackson Hewitt Tax Services Expands Workforce, Offering Job Opportunities Nationwide for Upcoming Tax Filing Season
The week-long event will launch the combined hiring of 18,000 employees to prepare for the upcoming tax filing season. The Jackson Hewitt hiring events are open to the public and include on-site interviews. Qualified candidates could receive a job offer immediately. - PNC Bank to Double Planned Branch Openings to More Than 200 Across Six States This announcement brings the bank’s total investment to approximately $1.5 billion to open more than 200 new branch locations in 12 cities across the U.S. over the next five years, while completing the renovations of 1,400 existing branches during the same time period.
- Alchemy Pay Expands Virtual Card Functionality with Google Pay Support The new card BINs added will significantly enhance the capabilities of crypto cards, expanding their support for a broader range of payment scenarios and improving transaction success rates. This advancement is particularly impactful when paired with Google Pay, one of the most popular and widely used digital payment platforms, trusted by millions for its convenience and security.
- Finaya Unveils Nationwide Homeownership Platform
From providing rich and current information about home values and property conditions, to finding helpful repair and remodeling providers, to shopping for and securing the right insurance, the platform simplifies the homeownership process, making it more accessible, convenient and efficient. - GenAI predicted to inspire revenue growth in 76% of businesses, but only 4% qualify as “leaders” in AI and analytics
Kearney’s report confirms that businesses are not only aware of how big data, AI, and analytics will impact revenue generation and enhance business strategies, but they are investing to stay ahead of the curve, too. - GameAbove Sports Acquires Meaningful Ownership Stake in Brisbane Bullets with NBA Legend George Gervin as Part of Ownership Team
This move marks a significant milestone for GameAbove Sports, a CapStone Holdings Inc. company, as it expands its influence on international basketball ahead of the Brisbane 2032 Olympics. - Most US shoppers are encountering generative AI while shopping without realizing it
A survey of 700 online shoppers in the US shows 71% are unaware of having used generative AI while shopping online even though most had recently shopped at retailers currently using it. 41% of customers say they would feel comfortable using a generative AI tool from a brand they trust.
For more news like this, check out all of the latest finance-related releases from PR Newswire.
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