Zakat on Crypto: Is It Due on Bitcoin?


Millions of young Muslims now invest in Bitcoin, Ethereum and other cryptocurrencies. At zakat time, they ask: is zakat due on my crypto? The answer depends on a basic question: is cryptocurrency “mal”, wealth recognised by Islamic law? Zakat is due only on such wealth.


View One: Crypto Is Not Islamic Wealth (Mufti Taqi Usmani)


In a fatwa issued from Darul Uloom Karachi on 10 June 2026, Mufti Muhammad Taqi Usmani ruled that all cryptocurrencies, tokens and stablecoins fail to meet the definition of mal in Islamic law, so dealing in them is not permissible. Earlier, Egypt’s Dar al Ifta (2018) had also declared crypto haram, and Indonesia’s Council of Ulama (2021) ruled it impermissible as currency.


Practical guidance under this view:


Avoid new investment in crypto.

If you hold crypto, try to exit.

Once crypto is sold and converted to cash, that cash is included in your zakat like any other money.


View Two: Crypto Is Wealth (Some Scholars and Bodies)


Some scholars and bodies, such as the Shariah Advisory Council of Malaysia’s Securities Commission (2020), consider crypto a permissible digital asset under certain conditions. Their reasoning is that mal is whatever people accept as a store of value and means of exchange. Under this view, zakat is due on crypto:


Value it: Find the market value of your crypto in your local currency on your zakat date.

Add it: Include it with your other zakatable wealth.

Pay: If the total reaches the nisab, pay 2.5 percent.


Practical Cases


Lost wallets: A wallet you can no longer access is like lost wealth; no zakat is due until it is recovered.

Staking rewards: Those who consider crypto permissible include these rewards in zakat.

Interest or gambling gains through crypto: These are haram under both views see our article “Zakat on Haram Money”.


A Final Word


Zakat on crypto depends first on its status in Islamic law. According to Mufti Taqi Usmani’s fatwa, crypto is not Islamic wealth and should be avoided according to some bodies, it is wealth and 2.5 percent zakat is due on it. In such a new and sensitive matter, choose caution, and consult a trusted scholar about your situation.