Crypto and Islamic Finance
Cryptocurrency is classified as a form of digital money or tradable asset by the majority of contemporary scholars. Because it has measurable market value and can be liquidated, it falls under the same zakatable asset rules as cash and gold.
On your Zakat anniversary date, total up all your crypto holdings at their current market price. Include coins in wallets, exchanges, staking protocols, and liquidity pools. Subtract any crypto-denominated debts, then apply 2.5%.
Frequently Asked Questions
Is Zakat due on Bitcoin and Ethereum?
Yes. Bitcoin, Ethereum, and all other cryptocurrencies are treated as zakatable assets. You owe 2.5% on their market value on your Zakat anniversary date.
What price should I use for valuation?
Use the market price at the close of your Zakat anniversary date. If the price fluctuates significantly, most scholars recommend using the average of that day.
Are NFTs subject to Zakat?
NFTs held for resale are treated like trading inventory and are zakatable at market value. NFTs kept for personal use (e.g., art display) are generally exempt.
Do staking rewards count?
Yes. Staking and DeFi yield are considered income. They are added to your total crypto balance and included in your Zakat calculation.