Paying Zakat on Cryptocurrency

Pay Zakat on your crypto assets by buying Digital Quran NFTs

Zakat On Cryptocurrency
Zakat On Cryptocurrency

Yes, many fiqh-based arguments support that cryptocurrency is an object of zakat. Zakat should be paid on cryptocurrency holdings. This is due to cryptocurrency position as an asset (maal), which is analogue with gold and cash in hand.

According to the fiqh issued by Darul Fiqh UK. Bitcoins are Zakatable as they are Māl (entity), have Taqawwum (Islamic legal value) and are in the ruling of a currency (Thamaniyyah).

Therefore, the method of zakat calculation for cryptocurrency is similar to the standard of zakat on gold and on cash in hand.

According to Islamic scholars,cryptocurrency and all other associated tokens are Zakatable. One may pay 2.5% of their cryptocurrency holdings as Zakat or alternatively pay Zakat in one’s domestic currency equivalent to the value of 2.5% of one’s crypto assets.

You can also pay zakat online using cryptocurrency by purchasing Digital Quran NFTs, a project to preserve the Quran Verses and their SHA256 value on the Ethereum blockchain one verse at a time. These 1 of 1 NFTs are created by using the ANSI text of ayat from the Holy Quran. The ayat and its hash value are used to create an image(jpg).

This gives an opportunity to pay your zakat and also hold a unique Token and a verse in your crypto wallet (for Barakat) which will be part of The noble Quran as it is written on the Block chain.

It is also to be noted that Zakat needs to be paid on the current market value of the tokens on zakat anniversary day. This is because any crypto-assets bought for capital gain will be zakatable at 100% its market value.

Blockchain Technology Company Pakistan — BTCPK

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