Imposing zakat on cryptocurrency (Bitcoin): A Shariah appraisal
Document Type
Article
Publication Date
1-1-2022
Abstract
This research aims to study whether zakat is due on cryptocurrency (Bitcoin) and to address the issues related to imposing zakat upon it. This study is conducted based on the qualitative research method following the inductive method and explanatory research approach. The findings show that Bitcoin is recognised as a digital asset in many countries and the tax is imposed accordingly. As such, Bitcoin is among the zakatable assets since it meets the conditions of zakat on assets. Moreover, Bitcoin as a digital currency would also be zakatable if a country recognises it as currency, as would any regulated digital currency issued by a government. Imposing zakat on Bitcoin would boost the total amount of zakat collectible, which would be beneficial for needy people. Further research is recommended to provide the zakat model for Bitcoin and other cryptocurrencies. © 2023 Inderscience Enterprises Ltd.
Keywords
Bitcoin, Cryptocurrency, Digital asset, Shariah, Zakat
Divisions
DeptofFiqhUsul,DeptofSyariahEconomics,finance
Publication Title
Global Business and Economics Review
Volume
28
Issue
1
Publisher
Inderscience Publishers