Chinese court rules salary paid in USDT illegal

In China, employers cannot pay employees salaries in stablecoins such as USDT. The ruling was issued by the Chaoyang District People’s Court (Beijing), according to the Beijing Daily.

The decision was issued in a case brought by a local resident. He held a position at one of the blockchain companies that paid him wages and bonuses in USDT.

The plaintiff’s request to use the yuan was accepted. The court referred to the tightening of regulation of the crypto industry in the country and stated that stablecoins are not a legal means of payment.

The demand to use the national currency in employment relations was deemed lawful. According to the ruling, the defendants are obliged to pay the plaintiff a total of more than 270,000 yuan ($40,240 at current rates) in wages and bonuses.

In 2021, the Beijing court ruled the contract for bitcoin mining invalid and rejected the plaintiff’s motion seeking compensation of 278 BTC.

Earlier in May 2022, the Shanghai High Court classified Bitcoin as a virtual asset with economic value, for the protection of which legal norms should apply.

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