Cryptocurrency is a currency created based on blockchain technology and digital technology.
Referring to the decision of the Selangor State Fatwa Committee Meeting held on 17 August 2021, it was decided that the ruling on conducting transactions using digital currency—whether as a medium of payment, remittance, or store of value—is permissible
Cryptocurrency Law
Cryptocurrencies and digital assets fall under the category of wealth (mal) because they possess the characteristic of al-Mutaqawwim (having value) and are subject to zakat based on general evidences of the obligation of zakat on wealth.
Although cryptocurrency is not considered legal tender under Shariah or civil law, it is categorized as an investment asset or security according to the Federal Government Gazette by the Ministry of Finance.
The obligation to pay zakat is not limited to cryptocurrencies and digital assets traded on Digital Asset Exchange platforms registered with the Securities Commission Malaysia.
List of Cryptocurrencies**
No. Type of Crypto No. Type of Crypto
1 Bitcoin (BTC) 6 Cardano (ADA)
2 Ethereum (ETH) 7 Solana (SOL)
3 Ripple (XRP) 8 Chainlink (LINK)
4 Avalanche (AVAX) 9 Uniswap (UNI)
5 Litecoin (LTC) 10 Bitcoin Cash (BCH)
| Bill | Types of Crypto | Bill | Types of Crypto |
| 1 | Bitcoin (BTC) | 6 | Cardano (ADA) |
| 2 | Ethereum (ETH) | 7 | Solana (SOL) |
| 3 | Ripple (XRP) | 8 | Chainlink (LINK) |
| 4 | Avalanche (AVAX) | 9 | Uniswap (UNI) |
| 5 | Litecoin (LTC) | 10 | Bitcoin Cash (BCH) |
**Subject to additions of cryptocurrency types in the market
List of Digital Asset Exchange (DAX) Platforms Registered with the Securities Commission Malaysia (SC)**
| Bill | Digital Asset Trading Platform (Digital Asset Exchange – DAX) | Types of Crypto |
| 1 | Luno | BTC, ETH, XRP, AVAX, LTC, ADA, SOL, LINK, UNI, BCH |
| 2 | MX Exchange | BTC, ETH |
| 3 | SINEGY | BTC, ETH |
| 4 | Tokenize Xchange | BCH, BTC, ETH, LTC, SOL, UNI, XRP |
**Subject to the addition of cryptocurrency platforms used in the market
Method for Calculating Cryptocurrency Zaka
The formula: Units of cryptocurrency and digital assets x current price (at end of haul) x 2.5% = Total Zakat
Example: Mr. Ali owns 0.2 units of Bitcoin (BTC) which has met the haul requirement. The current price for 1 BTC is RM258,107.
The zakat amount Mr. Ali needs to pay for the year 2021 is:
0.2 units x RM258,107 x 2.5% = RM1,290.54
Original source:
https://www.zakatselangor.com.my/info-zakat/zakat-kewajipan-berzakat/zakatkripto/
