Zakat on cryptocurrencies: how to calculate it

You have held Bitcoin, Ether, or other cryptocurrencies for more than a year. The question then inevitably arises: do I owe Zakat on these assets, and if so, how?

This guide answers practically, without needless jargon.

The principle: crypto as "mal" (owned property)

The majority of contemporary scholars — including Mufti Faraz Adam (Amanah Advisors) and Sheikh Joe Bradford — agree on this point: a cryptocurrency held for resale or as a store of value constitutes mal (owned property having monetary value). As such, it falls within the scope of Zakat exactly like gold or cash.

The Prophet (peace and blessings of Allah be upon him) said: "On every two hundred dirhams, five dirhams [of Zakat]" — this principle of 2.5% on monetary wealth has been consensus since the earliest times of Islam (reported by Abu Dawud, Sunan, Kitab al-Zakat, hadith no. 1574, chain graded sahih).

Nota bene: this citation will be re-validated by the docteur-quran-sunna agent before publication (blocking gate).

The classification of crypto as mal is upheld by AAOIFI (Sharia Standard N°35, section 3.1) for fungible digital assets having a determinable market value. It is also the position of the OIC Fiqh Academy in its Resolution N°188 (2009), reaffirmed since for cryptocurrencies.

The rule in the HalalStack application

HalalStack applies the following methodology, aligned with AAOIFI and the Hanafi school (default):

Which nisab for crypto? Crypto is treated as currency (mal/cash), not as physical gold. Two references coexist: 85 g of gold or 595 g of silver. The Hanafi school — HalalStack default — adopts the silver reference (595 g), which gives a lower euro threshold and is therefore more inclusive to the benefit of the rightful recipients. The Maliki, Shafi'i, and Hanbali schools allow adopting the reference most favorable to the poor depending on the holdings owned. The calculator adjusts the nisab according to the selected madhab. For reference, in 2025-2026 the silver-nisab fluctuated between €450 and €600; the gold-nisab between €5,000 and €6,500. HalalStack always displays the current-day value.

A concrete worked example

Here is a typical case to illustrate the calculation:

Yacine's situation on the day of his hawl (1 Muharram 1447):

Steps:

1. Check the nisab: on the day of the hawl, the Hanafi nisab (silver reference 595 g) ≈ €520. Yacine is well above. Zakat is due. (Even with the gold reference 85 g ≈ €5,400, Yacine would remain above.)
2. Check the hawl: Yacine has held these assets for more than 354 days above the nisab. Condition met.
3. Calculate: €15,665 × 2.5% = €391.63 of Zakat due.

HalalStack performs this calculation automatically from your connected holdings, using the EUR price on the day of the hawl.

Special case: staking

Staking income (ETH, SOL, ADA...) raises an active scholarly debate.

Majority position (Mufti Faraz Adam, IFG): staking rewards received throughout the year are zakatable income as soon as they are received, if they reach the nisab. They do not need to wait for a one-year hawl since they constitute new income (analogy with the agricultural harvest, Shafi'i/Maliki position). In the strict Hanafi school, some scholars apply the full hawl to each batch of rewards received — HalalStack adopts the more cautious majority view (zakatable on receipt) as the default option, with the ability to switch to strict Hanafi mode in the settings.

Status of the staked ETH itself: classified "doubtful" in HalalStack (cf. screening table). The value of the staked capital remains zakatable at 2.5% on the day of the hawl.

Special case: crypto classified "haram" in your portfolio

If you hold tokens classified "haram" (e.g. tokens of DeFi lending protocols such as AAVE, COMP), two positions coexist:

• Majority position: these assets are not zakatable as long as they have not been liquidated and purified. The priority is purification (giving away the gains in charity without intention of reward).
• Minority position (precautionary view): some scholars recommend paying Zakat on them anyway, so as not to gain an additional advantage from an illicit holding.

HalalStack offers both options in the calculator. The default Hanafi view is non-zakatable as long as purification has not been initiated.

The Bitcoin / Ethereum debate: halal or not?

This subject is the matter of an active scholarly debate. Here is the state of the positions — without any buy or sell recommendation:

HalalStack documents these positions with scholar references in each asset page. This table does not constitute a fatwa.

What this article does not do

• It does not give an opinion on the advisability of investing in a cryptocurrency.
• It does not replace the opinion of a qualified scholar on your personal situation.
• It does not definitively settle questions still under debate (staking, mixed PoS tokens).
• It does not cover French taxation of cryptocurrencies (capital gains art. 150 VH bis CGI) — a separate subject, treated separately.

Sources

• AAOIFI Sharia Standard N°35 (Zakah), sections 3 and 4 — aaoifi.com
• OIC Islamic Fiqh Academy, Resolution N°188 (19th session, 2009)
• Mufti Faraz Adam — "Cryptocurrency & Zakat", Amanah Advisors, 2022-2023 — amanahadvice.com
• Sheikh Joe Bradford — "Zakat on Digital Assets", 2023 — joebradford.net
• Islamic Finance Guru (IFG) — "Zakat on Crypto Guide", 2024 — islamicfinanceguru.com
• SeekersGuidance — "Is Zakat Payable on Cryptocurrencies?" — seekersguidance.org
• Zakat.org — "How to Calculate Zakat on Cryptocurrency" — zakat.org

Disclaimer: This article is for educational purposes. It is based on the AAOIFI methodology and the majority opinion of contemporary scholars. It does not constitute a fatwa and does not replace the personal opinion of a qualified scholar. For your specific situation, consult an imam or a certified Islamic finance advisor.

The HalalStack Zakat calculator is a calculation-assistance tool — responsibility for the final payment remains with the user.