Do You Pay Zakat on Crypto?
Yes — the majority of contemporary scholars agree that Zakat is due on cryptocurrency if your total eligible wealth (including crypto holdings) exceeds the nisab threshold for a full lunar year.
Cryptocurrency is a relatively new asset class, and the classical texts of Islamic jurisprudence obviously do not mention it. But scholars have applied established principles to reach a clear position.
Why Crypto Is Zakatable
The reasoning is straightforward. Zakat is due on wealth that:
- Has monetary value
- Can be traded or exchanged
- Is held above the nisab threshold for a full year
Cryptocurrency meets all three criteria. Bitcoin, Ethereum, and other digital assets have clear market value, are traded on exchanges, and can be converted to pounds at any time. They function as a store of wealth — much like gold, silver, or cash savings.
Most scholars classify crypto as either a trade good (similar to stock held for resale) or a digital currency (similar to cash). Under both classifications, Zakat is due at 2.5%.
How to Calculate Zakat on Crypto
The calculation follows the same principle as any other zakatable asset:
- Step 1: Determine the current market value of all your cryptocurrency holdings in GBP. Use the price on your Zakat anniversary date — the date your total wealth first exceeded the nisab.
- Step 2: Add this to your other zakatable assets — cash, savings, gold, silver, investments, and money owed to you.
- Step 3: Subtract any immediate debts and liabilities.
- Step 4: If the total exceeds the nisab threshold, pay 2.5% of the entire amount as Zakat.
You can check the current nisab using our Zakat calculator, which fetches live gold and silver prices.
A Practical Example
Suppose on your Zakat anniversary date you hold:
- 0.5 Bitcoin worth £15,000
- 2 Ethereum worth £3,400
- £8,000 in savings
- £3,000 in gold jewellery
- -£2,000 in debts due
Total eligible wealth: £15,000 + £3,400 + £8,000 + £3,000 - £2,000 = £27,400
The silver nisab is approximately £1,115 (check the live nisab). Since £27,400 exceeds the nisab, Zakat is due.
Your Zakat: £27,400 x 2.5% = £685
Which Price Do I Use?
Use the market value of your crypto at the moment you calculate your Zakat — typically on your Zakat anniversary date. Cryptocurrency prices are volatile, so the value may differ significantly from what you originally paid.
You do not use the purchase price. You use the current value on your Zakat date, just as you would value gold jewellery at today's gold price, not what you paid for it.
What About Staking Rewards and Yield?
If you earn crypto through staking, yield farming, or airdrops, these are considered additional wealth. They are included in your total crypto holdings and are zakatable like any other crypto asset.
The same applies to mining rewards — any crypto you receive becomes part of your zakatable wealth from the moment you receive it.
What About NFTs?
Non-fungible tokens (NFTs) are more nuanced:
- NFTs held for resale (trading) — these are trade goods and are zakatable at their current market value.
- NFTs held for personal use (digital art you display, a profile picture you use) — scholars differ, but many consider these exempt, similar to personal belongings you use and do not intend to sell.
If you are actively trading NFTs for profit, include their current market value in your Zakat calculation.
What If I Am Holding at a Loss?
Zakat is calculated on the current value of your crypto, not your purchase price. If you bought Bitcoin at £30,000 and it is now worth £15,000, you pay Zakat on £15,000 — not £30,000.
If your total eligible wealth (including the reduced crypto value) falls below the nisab, Zakat may not be due. But if it still exceeds the nisab, you pay 2.5% of the total.
Do I Need to Sell Crypto to Pay Zakat?
No. You can pay your Zakat in pounds from your bank account. You do not need to sell your crypto to pay Zakat — you just need to calculate its value in GBP and pay 2.5% of your total eligible wealth from any source.
Pay Your Zakat
At Deen Relief, we accept Zakat payments and operate a 100% Zakat policy — every penny reaches eligible recipients. Our trustees verify every case before funds are released.
Use our Zakat calculator to estimate your total Zakat including crypto holdings, or pay your Zakat now.