Cryptocurrency is generally considered zakatable by contemporary Islamic scholars. As a digital asset with measurable monetary value, crypto is treated similarly to cash or investments: 2.5% of the market value on your calculation date is due, if your total wealth exceeds the nisab after a full hawl year.
Key facts
- Mainstream position: cryptocurrency is zakatable as a monetary asset
- Rate: 2.5% of the market value (in GBP) on your calculation date
- Use the spot price on your hawl anniversary date, not the average or current price
- Crypto held in a cold wallet or exchange is treated the same way
- Staking rewards and DeFi income: treat as received cash and include in the total
- Highly volatile assets: the hawl condition applies — crypto held less than one year is not zakatable
Is Cryptocurrency Halal?
Before addressing zakat, many Muslims ask whether cryptocurrency is halal to hold. This is a separate and contested question. A growing number of Islamic finance scholars consider Bitcoin and major cryptocurrencies permissible as a store of value and medium of exchange. Others remain cautious, citing price volatility and speculative nature.
This guide focuses solely on the zakat position if you do hold cryptocurrency. Whether you should hold it is a separate question for a qualified scholar.
The Scholarly Position on Zakat for Crypto
The majority of contemporary Islamic scholars who have issued guidance on cryptocurrency treat it as a zakatable asset if you hold it as an investment or store of value. The reasoning is that crypto has monetary value, can be exchanged for goods and services, and functions similarly to other financial assets.
Key Islamic finance institutions including the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and several Darul Iftaas have issued guidance treating Bitcoin and major cryptocurrencies as subject to zakat.
How to Value Crypto for Zakat
Use the market price of each cryptocurrency on your hawl anniversary date. If you calculate zakat on 1 Ramadan, use the price on that day — not the current price if you are calculating after the fact.
The calculation is straightforward:
crypto_value_£ = quantity_held × market_price_in_£_on_calculation_date
(repeat for each cryptocurrency)
include total_crypto_value_£ in your zakatable assets
Staking Rewards and DeFi Income
If you earn staking rewards or DeFi yield on your crypto holdings, the received amounts should be treated as income and included in your total cash balance for zakat purposes. The hawl condition for the principal (your original holdings) applies separately from any income received during the year.
The Hawl Condition for Volatile Assets
The hawl requirement applies to crypto just as to other wealth. Crypto purchased during the current hawl year adds to your total wealth, but technically only the portion held since the beginning of your hawl year is fully subject to that year's zakat. In practice, most Muslims use a simplified approach: include all crypto held on the calculation date.