Research paper: Zakat on Cryptocurrencies

Summary

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:

Zakat on Cryptocurrencies – Mufti Faraz Adam

Two research papers on cryptocurrencies, tokens and ICOs (Initial Coin Offerings) will be released in the next couple of days discussing the nature and juristic interpretations of tokens and ICOs. A link will be available on www.darulfiqh.com as well as www.afinance.org.

 

About the author:

. Follow him on Twitter / Facebook.