GER: Can Cryptocurrency Be Used as Form of Remuneration?

May 9, 2025 Benn-Ibler Rechtsanwälte

The issue of remuneration agreements in the context of cryptocurrency was recently addressed by the German Federal Labour Court (Bundesarbeitsgericht, hereinafter BAG). The court was tasked with determining whether a claim for commission stipulated within an employment contract could be satisfied through the transfer of cryptocurrency.

The claimant was employed by the defendant, a cryptocurrency company, initially on a part-time basis and then full-time, from 1 June 2019. Her gross monthly salary was initially EUR 960 and later EUR 2,400. In addition, a commission was agreed upon which was calculated based on monthly business transactions. This commission was to be calculated in euros and hereafter converted into cryptocurrency at the exchange rate applicable on the payment date and then paid. However, no transfer was made until the end of the employment relationship, despite the claimant providing a suitable wallet and requesting the transfer several times. In December 2021, the defendant finally paid part of the commission. The claimant asserted their remaining commission claims.

The defendant argued that the commission claims had been settled in full by the payment made in December 2021. They also stated that payment in cryptocurrency was not permitted under Section 107(1) of the German Trade Regulation Act (Gewerbeordnung, hereinafter GewO). The lower courts mostly agreed with this claim.

The BAG has now clarified that cryptocurrency cannot be considered ‘money’ under Section 107(1) of the GewO. According to this regulation, remuneration must be paid in euros. Payment in cryptocurrency does not fulfil this requirement. However, the regulation permits agreements for payments in kind, provided this is in the employee’s interest. Therefore, an employment contract stipulating that commission claims are to be settled in cryptocurrency could qualify as payment in kind.

However, the provision of an in-kind benefit is subject to the protection of the unseizable portion of income. Accordingly, the value of the agreed in-kind benefit must not exceed the amount of the remuneration that can be seized. The court emphasised that employees must receive the unseizable portion of their remuneration in cash.

BAG 10 AZR 80/24 (16 April 2025)