USDT stablecoin salary payments ruled illegal by Chinese court
Tether USDT stablecoin cannot be used for wage payment, Chinese court has ruled, citing country's blanket ban on all types of crypto transactions.
New
Although the Chinese government banned all kinds of cryptocurrency transactions last year, some companies apparently still use stablecoins like Tether (USDT) to pay their employees.
Beijing's Chaoyang District People's Court has ruled that stablecoins such as USDT cannot be used for salary payments, local news agency Beijing Daily reported on Wednesday.
The Chinese court ruled that virtual currencies such as USDT cannot circulate in the market as currency, forcing all employers to only pay their workers using the official currency, the renminbi (RMB).
The decision came amid a legal case involving a staff member of a local blockchain company suing his employer for not agreeing to pay his salary in RMB. The plaintiff argued that instead of paying him in RMB, the company paid his salary and bonuses in USDT stablecoin.
Citing China's general ban on cryptography enforced in September 2021, the court pointed out that digital currencies like USDT do not have the same legal status as legal tender. The court noted that the plaintiff's request to receive salaries and bonuses in the form of RMB is fully in accordance with local laws and the court supports it.
As such, the court ordered the defendants to pay a total of more than 270,000 RMB ($40,000) in salaries, performance bonuses and annual bonuses owed to the plaintiff.
As previously reported by Cointelegraph, the People's Bank of China officially announced a set of measures to curb crypto adoption in China in September 2021. The action involved 10 Chinese state authorities establishing a new mechanism to prevent financial actors from participating in any cryptocurrency transactions.
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Tether USDT stablecoin cannot be used for wage payment, Chinese court has ruled, citing country's blanket ban on all types of crypto transactions.
New
Although the Chinese government banned all kinds of cryptocurrency transactions last year, some companies apparently still use stablecoins like Tether (USDT) to pay their employees.
Beijing's Chaoyang District People's Court has ruled that stablecoins such as USDT cannot be used for salary payments, local news agency Beijing Daily reported on Wednesday.
The Chinese court ruled that virtual currencies such as USDT cannot circulate in the market as currency, forcing all employers to only pay their workers using the official currency, the renminbi (RMB).
The decision came amid a legal case involving a staff member of a local blockchain company suing his employer for not agreeing to pay his salary in RMB. The plaintiff argued that instead of paying him in RMB, the company paid his salary and bonuses in USDT stablecoin.
Citing China's general ban on cryptography enforced in September 2021, the court pointed out that digital currencies like USDT do not have the same legal status as legal tender. The court noted that the plaintiff's request to receive salaries and bonuses in the form of RMB is fully in accordance with local laws and the court supports it.
As such, the court ordered the defendants to pay a total of more than 270,000 RMB ($40,000) in salaries, performance bonuses and annual bonuses owed to the plaintiff.
As previously reported by Cointelegraph, the People's Bank of China officially announced a set of measures to curb crypto adoption in China in September 2021. The action involved 10 Chinese state authorities establishing a new mechanism to prevent financial actors from participating in any cryptocurrency transactions.
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