A Chinese court has determined that the nation’s overall ban on digital assets circulation justifies the impossibility of paying workers with the Tether (USDT) crypto.
The Chaoyang-based court determines that employees have to be paid in Yuan
Beijing Daily stated on July 6, 2022, that the Chaoyang-based court upheld that labor rules require wages to be received in local Chinese currency because cryptos do not have the same legal standing as traditional currencies.
This came about after a guy named Shen filed a lawsuit against his previous employers for failing to pay his outstanding salary after a job was completed. Then, after the company was dissolved, he filed a lawsuit against the employer, Hu and Deng’s major stockholders.
The court’s investigation revealed that Hu chose to pay the plaintiff in USDT rather than the local Chinese currency. Hu demanded his salaries be compensated in local currency but insisted on the stablecoin
The court stated, “The USDT Tether involved in the case should not and cannot be circulated in the market as a virtual currency. Therefore, Mr. Shen’s request to pay wages and bonuses in the form of RMB complies with the law, and the court supports it.”
For the service, he was supposed to be compensated 50,000 yuan before appropriate deductions, Shen alleged that the employers were using an improper working system. As a result, the court decided that Shen must be given his unpaid salary in the local Chinese currency.
The Chinese government continues to crackdown on cryptos
In China, where the government has continued to crack down on the industry over the past year, cryptos are still banned. Cryptocurrencies, according to authorities, pose a risk to the nation’s financial stability.
As a result, the government has emphasized through a number of authorities that there are hazards associated with cryptocurrencies, even going so far as to warn that today’s market slump will drive Bitcoin to zero. Bitcoin, which is the largest cryptocurrency today, has lost considerable value this year and currently trades at around $20,000.