Dubai Court Validates Crypto as Salary Payment

A recent ruling by a Dubai court represents a notable shift in the legal stance towards cryptocurrencies, positioning the UAE in line with evolving global digital finance trends.

Recognition of Crypto Salaries

On August 16, the Dubai Court of First Instance acknowledged the legitimacy of cryptocurrencies as a form of salary payment. Irina Heaver, a legal expert from NeosLegal, pointed out that this ruling, related to case number 1739 of 2024, marks a significant change from previous judicial positions that did not recognize cryptocurrencies due to valuation uncertainties.

The case revolved around an employee’s lawsuit claiming unpaid wages from their employer, a situation that led to a request for damages related to wrongful termination. Ultimately, the court favored the employee, affirming that their salary in cryptocurrency should be honored as per the employment contract without the need for conversion to fiat currency.

Crypto Exchanges Pursue Licenses in Turkey

Several cryptocurrency platforms, including Coinbase and KuCoin, have recently submitted applications for crypto licenses in Turkey. This follows new regulatory updates from the Turkish Capital Markets Board (CMB).

As of August 9, the CMB reported that 47 crypto entities had applied for licenses under the updated framework. By August 18, that number had increased to 76.

Major players such as Binance, Bitfinex, and OKX are already part of this licensing initiative as more companies aim to establish a footprint in the Turkish market. It’s important to note that being listed as “Those in Operation” does not guarantee official authorization; each entity is still required to secure formal approval.

Legal Challenges for Crypto Mixer Founder

On August 15, attorneys for Roman Sterlingov, founder of the crypto mixing service Bitcoin Fog, contested the severity of his proposed 30-year prison sentence connected to money laundering convictions. In their filing to the United States District Court for the District of Columbia, they claimed that the government’s recommendations were excessive compared to sentences in similar cases.

The US government alleged that Bitcoin Fog was involved in facilitating over $400 million in Bitcoin transactions linked to various criminal activities, such as identity theft and drug trafficking. Another prominent figure, Roman Storm, co-founder of Tornado Cash, is facing similar charges and is awaiting trial later this year.

Controversial AI Bill in California

A proposed legislation in California, focused on ensuring AI safety, has sparked debate among tech leaders in Silicon Valley. Introduced by Democratic lawmakers, the legislation, referred to as the “Safe and Secure INnovation for Frontier Artificial Intelligence Models Act” (SB 1047), mandates that AI developers implement safety protocols to avert potential catastrophic outcomes.

• Establishment of an “emergency stop” button for AI systems
• Annual third-party safety audits for AI technologies
• Severe penalties for non-compliance

The bill aims to set formidable standards in the quickly evolving field of artificial intelligence to ensure responsible innovation.