Sunday, May 26, 2024
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Zakaah on crypto

Fatwaa ID: 877

Question:
Assalamu alaykum wa rahmatulaahe wa barakaatuhu
So, for crytocurrency. I’m confused because I put in $1000 but the market is down and I’m in loss right now. That $1000 is worth like $450. Because the worth is still within nisaab, would I give zakaat on it regardless that it’s in loss?
It was fluctuating throughout the year and currently it’s worth $450.

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

At the outset, we wish to clarify a possible misunderstanding in your question: all zakaatable assets are added together to determine zakaah liability. Each asset is not analyzed individually. Even if you have a dollar worth of crypto or gold, it will be added to your total zakaah calculation.

Nevertheless, cryptocurrencies are subject to zakaah. This is the case even if you are in loss. The value of one’s crypto on one’s zakaah date will be considered. If the prices fluctuate throughout the day, then the price at the beginning of the Islamic day, i.e., Maghrib time the night before, will be considered. That price will be added to your total calculation. You will then pay 2.5% of the total if the total reaches the quantum.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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