Regulation News
- Chinese courts reportedly bans business firms from paying wages in USDT.
- The news report was published by Beijing News.
- China is trying to abolish every bit of virtual currency presence in the country.
According to a report from Beijing News, the Chinese courts have banned businesses from paying wages in Tether (USDT). A recent labor dispute that occurred in Chaoyang Court gave a verdict regarding wage payments in virtual currency.
The firm was ordered to pay the arrears of salaries and bonuses in RMB since the court declared that virtual money should not and cannot be used as currency in the market.
The lawsuit was filed by Mr. Shen, who is the VP of a network technology firm. He had a monthly salary of 50,000 yuan. The real wage was paid as RMB 2,574 plus the virtual currency USDT after social security and provident funds have been subtracted.
Mr. Shen resigned in June and negotiated with the company to pay the arrears of wages and overtime payments. After the firm was dissolved, Mr. Shen filed a lawsuit in court against the two owners, Hu and Deng.
While Hu responded to the lawsuit by stating that the payments were made in USDT, Mr. Shen asked the firm to pay in RMB. The court declared that “Labor Law” requires that salaries be given to the worker in cash each month as per the terms of payment.
The Renminbi is designated as the People’s Republic of China’s legal tender under the law. The USDT Tether in question is not permitted to be used as a kind of virtual money in the country.
The court complied with Mr. Shen’s request and ordered Hu and Deng to pay 270,000 RMB to Mr. Shen.
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