English Abstract
Abstract:
Purpose – This paper aims to examine the existing practice of accepting zakat payments using
cryptocurrencies and crypto assets by discussing its Shariah issues.
Design/methodology/approach – This is qualitative research in nature, as unstructured interviews
with experts in the field were conducted to understand the existing practice regarding zakat on
cryptocurrencies/crypto assets while literature on the topic was reviewed to derive conclusions.
Findings – It is found that there are divergent views among contemporary Shariah scholars on the Shariah
permissibility of cryptocurrency and crypto assets. As such, by evaluating the existing practices of some
companies, this study has concluded that there is room to pay zakat using cryptocurrencies and from
investments made on crypto assets. As long as they have been screened and classified as Shariah-compliant, they can be qualified to be part of one’s wealth from which zakat shall be paid. However, the findings of this research shall be subject to the fatwa and rules adopted in the specific jurisdiction in which the zakat payer resides. Laws made by the ruler to benefit the public ought to be considered in upholding the masalih (public interests) of all, which is in line with the legal maxim of “tasarruf al imam manut bi al-maslahah” (the ruler’s decision is dictated in favor of the people).
