Fatwa's Insights - Islamic Finance

THE 42ND MEETING OF THE PERLIS STATE FATWA COMMITTEE / 2019

14 - 15 JULAI 2019 / 11 - 12 ZULKAEDAH 1440H

FATWA CONCERNING ZAKAT ON BITCOIN (BTC) DIGITAL ASSET

The Perlis State Fatwa Committee is of the view that Bitcoin is subject to zakat when it fulfills the haul (one lunar year) and nisab (minimum threshold) based on its nature as 'Urudh al-Tijarah (trade goods). The calculation of zakat for Bitcoin is:

[(Lowest value of BTC unit within one year × number of BTC units) + trading profits throughout the year] × 2.5%

Payment may be made in the form of monetary value or BTC units.

Resolved at the Meeting of the Majlis Agama Islam dan Adat Istiadat Melayu Perlis No. 1 of 2020 convened on 10 January 2020.