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Zakat On Crypto Asset
Aa Crypto assets are a means of production I get the ruling for Zakat on Earnings that earnings through it more than nisab would be applicable for Zakat
what would be the ruling for them on Zakat on Asset? Would they be exempted or I have to give 2.5% zakat on their current value?
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6 Replies
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Zakat On Crypto Asset
updated 3 years, 1 month ago
2 Members
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6
Replies
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Digital assets are not any different from other liquid assets for the treatment of zakat. Please see my responses in the thread below:
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Can you please explain explain the rationale behind treating Digital assets same as liquid assets.
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I’m not sure what rationale you might be looking for other than what’s already self-evident. Cryptocurrency is by definition a currency, hence a liquid asset. Since I might not have all the required information in this regard, if you have a reason to believe it should be considered differently, please share your argument and I’ll be happy to re-assess my understanding.
Also for zakat purposes, whether the asset is liquid or not might be irrelevant.
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I don’t have any other argument I just wanted to understand it more in depth. I thought of it as a business and as our coins will be a means of production so we won’t be paying zakat. Now what I understand is that people like me who have got these coins as a means of saving. Zakat would be applicable on current value of coins (just as people buy gold for savings) but if a person who does crypto for sake of proper business he wouldn’t be paying zakat as it would be considered means of production in this case ( just as gold dealers they have proper business of gold ) Am I right in my understanding?
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In order for an asset to be qualified as a means of production, it must be in business use. In that case zakat will be paid on the amount produced during the period while the asset itself will be considered exempt. In financial markets trading, this situation is very rare for most people.
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