- The Dubai Court ruled favoring the payment of salaries in cryptocurrencies.
- Salary payments in crypto are valid under employment contracts, per the court’s ruling.
- (VARA) is leading the way in crypto regulation, providing a clear framework for businesses to operate.
The United Arab Emirates (UAE) actively explores digital assets and blockchain technology possibilities. The region has transparent rules for crypto and several other blockchain-based products.
Most leading cryptocurrency exchanges have acquired regulatory green signals in the UAE; some have already inaugurated their regional workplaces.
The boost in crypto-related activities clearly reflects the UAE’s clear intention to back its developing economy. There is speculation that the involvement of royal families in Web3 has severely backed the adoption of crypto assets in the region.
As per the recent ruling of the Dubai Court, salary payments in crypto are valid under employment contracts. A legal expert at NeosLegal asserts that the verdict is just opposite to the court rule in 2023, quoting that crypto lacks precise valuation.
Market watchers claim that the judiciary’s ruling will increase the adoption rate. The verdict will show a “progressive approach” to integrating digital assets into the country’s legal and economic framework, said the expert.
The expert added that this decision reflected a traditional viewpoint, emphasizing the need for concrete evidence when dealing with unconventional payment forms”.
Hong Kong vs UAE: Who is a Crypto Hub?
Following China’s decision to ban crypto mining and other crypto-related activities, Hong Kong has eased its rules and regulations regarding crypto.
In the past few years, the region’s government has worked to make the rules and regulations friendly for crypto enthusiasts.
On October 20, 2023, SFC noted that professional investors will be restricted from opting for some cryptocurrency products. There are updated guidelines for intermediaries like crypto exchange platforms.
Earlier, the financial secretary of Hong Kong informed that they had allocated HK$50 million as an annual budget for the betterment and development of Web3 technology.
The Dubai Virtual Assets Regulatory Authority (VARA) is leading the way in crypto regulation, providing a clear framework for businesses to operate. The region has a more established reputation for being open to crypto businesses and innovation.
Both Hong Kong and the UAE have their strengths and weaknesses as crypto hubs and the choice between them depends on individual preferences and priorities.
2024 Licensing Updates
Binance, the world’s largest crypto exchange by trading volume, secured a full virtual-asset services provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in April this year.
Per VARA’s filing, Exchange’s local unit, Binance FZE, obtained an Operational MVP license in mid-2023.
The issuer of USDC, Circle, is now listed as an electronic money institution, or EMI, in France, granting the firm a key license to become a compliant stablecoin issuer under the European Union’s strict crypto laws.
In April 2024, VALR, a cryptocurrency exchange, secured a green signal over new crypto asset service provider (CASP) licenses from the Financial Sector Conduct Authority (FSCA).
B2C2, a popular liquidity provider, secured regulatory approval in Luxembourg as a virtual asset service provider (VASP).
Following the approval in February 2024, the institution became the 12th virtual assets service provider registered in Luxembourg’s Commission de Surveillance du Secteur Financer’s (CSSF) public register.
2024 brought a gift for Bybit, a popular crypto custodian with regulatory in-principle approval, to operate as a Major Payment Institution (MPI) in Singapore.
Crypto Market Price Update
Since the beginning of 2024, the broader cryptocurrency market has battled some unprecedented events. WazirX breach and heist have stirred the sentiments, but Bitcoin prices are constantly luring giants.
When writing, the market capitalization was $2.7 trillion, with a mild bullishness of 0.07%. In the past 24 hours, THORChain (RONE) trading volume surged 58.78% and is trading at $3.87.
Aave (AAVE) trading price grew 3.88% intraday and 14.40% in a week, reaching $110.31.
