Malaysia first country to enable zakat payments with crypto
The Federal Territories Islamic Religious Council's Zakat Collection Centre (PPZ-MAIWP) spearheaded the initiative, with its Chief Executive Officer, Datuk Abdul Hakim Amir Osman, highlighting its goal of educating Muslims on fulfilling their zakat obligations in the modern era of blockchain technology and cryptocurrency
Malaysia has achieved a global milestone by becoming the first country to allow zakat payments using digital assets.
The Federal Territories Islamic Religious Council's Zakat Collection Centre (PPZ-MAIWP) spearheaded the initiative, with its Chief Executive Officer, Datuk Abdul Hakim Amir Osman, highlighting its goal of educating Muslims on fulfilling their zakat obligations in the modern era of blockchain technology and cryptocurrency, reports NST.
According to a report by Buletin TV3, this innovative effort marks the latest step by PPZ-MAIWP to streamline zakat payments for Muslims across the country.
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Malaysians currently hold digital assets worth RM16 billion, which fall under zakat's purview, further emphasising the significance of this initiative.
"Among those aged 18 to 34, 54.2 per cent of the total investors are involved in the crypto world.
"Therefore, we see this as a new source of zakat, a new source of wealth, especially for the younger generation," he was quoted as saying.
He added that the 134th session of the Federal Territories' Islamic Legal Consultative Committee also ruled that digital currency is a tradable commodity, with business zakat set at a rate of 2.5 per cent.
"The digitalisation of religious practices demonstrates that Islam continues to evolve and adapt to the evolving needs of its followers" he said.
It was reported that the zakat collection from digital assets increased by 73 per cent, amounting to RM25,983.91 in 2023. This year's collection has reached approximately RM44,991.97.
