Salary Payments in USDT Are Illegal, Chinese Court Rules

Chaoyang District People’s Court

Beijing’s Chaoyang District People’s Court has stated that Chinese employees must be paid in Renminbi (RMB), China’s official currency.

Beijing Daily reported that the decision came as an employee of the local blockchain company; Mr. Shen sued his employer for refusing to pay his wages in RMB. He expressed annoyance at the payment of salary and bonuses in USDT stable coin rather than RMB.

Supporting the plaintiff’s claim, the court pointed out that employers should pay wages in the official currency. Shen’s request fully complies with the law since digital currencies, including Tether, are not China’s official currency.

Furthermore, per the Chaoyang Court ruling, a sum of more than 270,000 RMB ($40,000) in wages, performance bonuses, and annual bonuses owed to the employee by the company.

May-September 2021 saw China introducing a total ban on cryptocurrency mining and trading, triggering a flight of mining companies known as the Great Migration. However, analysis from the Cambridge Centre for Alternative Finance shows that a certain number of miners have been able to sideline the regulations because China’s rate in Bitcoin has increased by 20% after dropping to zero in July 2021.

The regulation, however, doesn’t necessarily mean the draconian measures introduced by China, as legalizing stable coins could bring many benefits for under-banked people.

There is also the issue of whether or not this regulation will be sidelined.

The Bank of England’s CE warned against big rates yesterday.

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