Q: Do we pay Zakat on cryptocurrencies?

A: Any cryptocurrency or token purchased to resell will always be Zakatable. Zakat is due on the market value on one’s Zakat anniversary. The cryptocurrency value should be converted into one’s local currency at the time of calculation. If a cryptocurrency is not purchased to resell, a coin currency such as Bitcoin, Litecoin, Ripple etc will still be Zakatable because of their utility as currencies within their ecosystem. Zakat on tokens not purchased to resell will depend on the nature of the token and what it represents. The complete document can be downloaded from the following link:

https://afinanceorg.files.wordpress.com/2018/05/zakat-on-cryptocurrencies-mufti-faraz-adam.pdf

And Allah knows best!

Mufti Faraz Adam

courtesy of afinance.org
Was this article helpful?
Thank you!