In a dispute over a cryptocurrency investment, the Dubai Court of First Instance has issued an order for payment of damages in Dash rather than the monetary value of the cryptocurrency. This order, although capable of appeal, is thought to be the first of its kind in the UAE. The effect of the order is that the amount ultimately recoverable in fiat currency can significantly change between the date of judgment and the date of enforcement. The UAE Courts do not recognise a binding system of judicial precedent, however, the Court’s willingness to award damages is consistent with the UAE’s wider objective of becoming a hub for crypto-based businesses.
The Law Commission of England and Wales is actively considering reform to address certain legal barriers that, to date, have prevented such awards being made in the Courts of England and Wales.
The information provided in this article is of a general nature and does not constitute, nor should be relied on, as legal or professional advice.