Malaysia is the first country in the world to include Bitcoin in Zakat

[Mrbluntzy]

@OP, I opened the link to this update which you posted but saw something that I couldn't verify to be true. Before now, i have read an article that was telling about the catholic nuns that used Bitcoin to build a new church.
The quot I highlighted below was gotten from the article that OP posted but that statement is not true because of, Meet The Catholic Nuns Who Are Building A New Church With Bitcoin.

If there was any first time that crypto was integrated in the religious practices, it was in Kansas City, Missouri, USA.

"Malaysia allows crypto in zakat payments

This is the first time cryptocurrency has been officially integrated with religious practices in a country."

[Kryss191]

 Zakat institutions benefit from implementing Bitcoin technology which shows their ability for system integration between contemporary digital networks. The solution offers much-needed clarification regarding Bitcoin's religious acceptability within Islam to people who had doubts. The experience of nations bringing digital technology into practice alongside their traditional values appears pleasing.

[Nothingtodo]

This is undoubtedly a matter of great joy, especially since the exchange of zakat through Bitcoin will further increase the popularity of Bitcoin. Muslim countries that were against Bitcoin will also gradually come to Bitcoin's favor. Islamic countries will gradually approve the acceptance of Bitcoin. If Islamic aid is given in exchange for Bitcoin, then other Islamic countries can certainly create opportunities for banking transactions.

[Ever-young]

I don't consider bitcoin an investment, but rather a monetary system, that is, money. So why pay a percentage on "investments"? Anyway, I don't know if this is good or bad news, after all, bitcoin is freedom, and everything that is freedom can be used in any way you want... the positive point is that more people will have access and will be able to have bitcoins and everything it provides, even paying a percentage on "investments"

You don’t consider it to be an investment but those who do see it that way expect to make profit from it which is by that definition that the law of remitting 2% of profit as tax is being made in Zakat. Its good news that’s it’s legally accepted as investors in Zakat don’t need to debate if its a sin to own Bitcoin or not, the bad news is government will always be government as they are more concern on what they are to benefit from what the people are making.

[PrivacyG]

You know what.  There are many religious practices I either do not understand or do not agree with, but this is certainly not one of them.  Unless the Money goes not toward the Poor as charities are supposed to work but to the Rich instead, just like many Scam 'charities' work, there is nothing wrong with it in my opinoin.  Particularly if this is a tradition.

It is certainly a good thiing to see Bitcoin recognized as Wealth.  It is in fact kind of surprising in a way.  But I wonder, why do other countries not include Bitcoin in Zakat?  Are religious Muslims supposed to pay their percentage of Bitcoin in Zakat, consdiering it is a type of Wealth?  As in, is it a 'sin' to pretend it is not Wealth but knowing it is, and still not paying the Zakat?

[jcojci]

~

Hopefully, other countries will follow Malaysia's step to consider Bitcoin is Halal. I'm still seeing plenties of muslim countries are treating Bitcoin is haram. This can be a good move for Bitcoin to be massive on muslim countries.

Although it may take some time, better than getting banned.

Yes, when other Muslim countries follow what Malaysia's do, that will give support to Bitcoin in the Muslim countries. With many supports from other Muslim countries, the Bitcoin position will be stronger and people will see that in Muslim, Bitcoin is Halal.

That makes them want to involve in Bitcoin because the Halal is important to them. Yes, we need to wait for that and take some time because that is not just as easy like we turn our hands.

[retreat]

Malaysia is the first country in the world to include digital currency or Bitcoin in Zakat. All Muslim individuals who invest in Bitcoin. It has been determined that they will have to pay 2.5 percent Zakat at the end of the year from the amount they invest.

https://www.thedailystar.net/tech-startup/news/malaysia-allows-crypto-zakat-payments-3804951

For Malaysian Muslims, Bitcoin is considered a halal digital currency from an Islamic perspective. There are many Muslim brothers and sisters who think that Bitcoin is forbidden from an Islamic perspective. For this reason, many are not willing to invest in Bitcoin. But Malaysia is the first country in the world to include Bitcoin in Zakat.

Most Muslims still consider cryptocurrency to be haram, because it contains high elements of gharar (uncertainty) due to extreme price volatility and the potential for money laundering/other criminal activities. But there are some who consider it halal because it can be used in daily transactions and there is no element of usury in its use or as long as the user does not violate sharia law in its use.

I think that Muslim scholars in Malaysia refer to the last point I said where it can be used as a transaction and can be traded and it has become a new source of wealth for people - so that Muslim crypto holders need to pay zakat on their assets.

However, this is still a question, why do Muslim scholars there equate all of that to cryptocurrency? because memecoin contains elements of gharar - it is based on speculation and there is gambling there - and it is clearly haram to be used as zakat, and several other altcoins that are riskier. Unlike Bitcoin which is safer and has clearer uses, and is more suitable for use in zakat. The scholars there should be able to distinguish which assets are suitable for zakat or not, because not all cryptocurrencies meet the halal elements.

[hero_the_bossman]

This is undoubtedly a matter of great joy, especially since the exchange of zakat through Bitcoin will further increase the popularity of Bitcoin. Muslim countries that were against Bitcoin will also gradually come to Bitcoin's favor. Islamic countries will gradually approve the acceptance of Bitcoin. If Islamic aid is given in exchange for Bitcoin, then other Islamic countries can certainly create opportunities for banking transactions.

Interesting development indeed.
But I do wonder how many countries would do the same, considering how govs are usually skeptical of such decisions. Nevertheless, it's a good precedent.

[AVE5]

For Malaysian Muslims, Bitcoin is considered a halal digital currency from an Islamic perspective. There are many Muslim brothers and sisters who think that Bitcoin is forbidden from an Islamic perspective. For this reason, many are not willing to invest in Bitcoin. But Malaysia is the first country in the world to include Bitcoin in Zakat.

The Muslims has been one strong traditional religion that're strict and committed with their religion beliefs.
What I don't understand in that perspective view if bitcoin is permissible or forbidden based on their beliefs and yet their governments are facilitating on accepting bitcoin on the zakat custom.
That mentality is doing those fellows stepping back from investing on bitcoin no good but a setback because bitcoin hasn't been an illicit potential of breaching religious practices neither does it portrays indecent potentials.

[crwth]

Wow it's nice to see that Bitcoin as a digital currency is being applied in Zakat. I do remember that it's the alms right to give in Islam? Anyway, it's a great step and for Bitcoin to be recognized as a halal in their perspective is good. That's progress right? I wonder what other countries would do it as well? Like are there similar initiatives from other countries?

Any Muslim around here to confirm this? And why Malaysia is the first one? 

[Jewan420]

And why Malaysia is the first one?  

I don't know specifically why Malaysia is the first Muslim country in the world to legalize Bitcoin for Zakat. However, I saw a report in my local media that said that such an initiative has been taken to inform and train Muslims about Zakat in the age of cryptocurrency. As cryptocurrency is a growing sector in Malaysia, currently 54.2 percent of the country's total investors are under this sector. Most of the investors are between the ages of 18-34. Their investment in this sector is about $3.6 billion. Therefore, the government thinks that this crypto sector can be a new source of Zakat, especially for the younger generation. 63.5 percent of the total population of Malaysia is Muslim, while a large portion of investors in the crypto sector are Muslims. Digital currency has been recognized as a tradable product at the 134th session of the Federal Territories Islamic Religious Council. Datuk Abdul Hakim Amir Osman, "Now is the era of digitalization. As the economy is becoming digitalized, we also have to adapt to the changing times."

[Fiatless]

Wow it's nice to see that Bitcoin as a digital currency is being applied in Zakat. I do remember that it's the alms right to give in Islam? Anyway, it's a great step and for Bitcoin to be recognized as a halal in their perspective is good. That's progress right? I wonder what other countries would do it as well? Like are there similar initiatives from other countries?

Any Muslim around here to confirm this? And why Malaysia is the first one? 

Malaysia is not a conservative Muslim nation like others. Over the years, the country has undergone some significant changes in the application of some Islamic laws. Muslims in my country don't see cryptocurrencies as filthy. Some of them are crypto traders. Hopefully, this move by Malaysia will have a ripple effect on other Islamic nations.

However, I don't understand from the article whether Zakat is to be paid in Bitcoin directly or in local currency but for gains related to Bitcoin.
Can anyone clarify?

Malaysian Muslim who wants to pay Zakat with cryptocurrencies without converting into fiat can use a crypto platform called Sharlife.

[Cryptomultiplier]

Malaysia is the first country in the world to include digital currency or Bitcoin in Zakat. All Muslim individuals who invest in Bitcoin. It has been determined that they will have to pay 2.5 percent Zakat at the end of the year from the amount they invest.

https://www.thedailystar.net/tech-startup/news/malaysia-allows-crypto-zakat-payments-3804951

For Malaysian Muslims, Bitcoin is considered a halal digital currency from an Islamic perspective. There are many Muslim brothers and sisters who think that Bitcoin is forbidden from an Islamic perspective. For this reason, many are not willing to invest in Bitcoin. But Malaysia is the first country in the world to include Bitcoin in Zakat.

I beg to differ on the point that Bitcoin is considered halal by many Muslims because there has been a launch of the Islamic coin which is also a crypto currency or digital currency and it operates on the Blockchain like Bitcoin does. If the Islamic world chose to not accept BTC but choose to create theirs, which is the Islamic coin, then I don't think there's any difference in accepting BTC for use or not because unlike the Islamic coin which is a digital currency for exchange and trade, Bitcoin is also a digital currency with same functionality.

Every country right now is trying to make new breakthroughs in cryptocurrency or digital currency applications and no one can really say how such a country may decide to adopt it, either to create a new coin or to create a new system that manages the use of cryptocurrency and that's great because that's what Malaysia has done with the introduction of Bitcoin in Zakat which is a rightful obligation for every Muslim faithful who is rich and accomplished at a very distinguished time in their life.

[Free Market Capitalist]

So this 2.5% will be from profit or total investment?

Both of them.

Example, if you get paid 0.005 BTC or worth of $500 from signature campaign, you need to give 0.000125 BTC.

Now, your coins left is 0.004875 BTC or worth of $487.5, if Bitcoin price doubled and you sell it for $975, you will need to pay 2.5% from the profit too, which is $487.5 x 2.5% = $12.1875

It sounds to me a lot like Western taxes that have no religious vision, which would be two different taxes. In the first case it would be income tax and in the second case capital gains tax on profit. Although they are sure to charge you more than that 2.5%.

So, would the Zakat be something like the tithe? (although the thithe, as its name indicates, is usually 10%)

[Darker45]

So this 2.5% will be from profit or total investment?

It's not only the profit, but the total investment too.

Based on what I've read, zakat is also imposed on assets. Your Bitcoin is an asset. Therefore, you will pay zakat on it, not on its profit.

However, the specific rule of zakat on assets is that it is only payable if the asset is acquired to generate wealth. What if a Muslim bought Bitcoin not to generate profit but to be used as money in the future when it's already widely accepted in the country? Would that exempt him?

However, I don't understand from the article whether Zakat is to be paid in Bitcoin directly or in local currency but for gains related to Bitcoin.
Can anyone clarify?

According to the article, "Malaysia has become the first country in the world to permit the use of digital assets for zakat payments". The title itself says, "Malaysia allows crypto in zakat payments". There's also the phrase "as a legitimate form of zakat payment".

From these lines, I think it means zakat can be paid in Bitcoin.

Moreover, as I've clarified above, zakat is imposed not on the gains of your Bitcoin but on your Bitcoin itself. If you have a land as an asset, for example, zakat is to be imposed on it, not on its gain. I'm supposing Bitcoin and other crypto are treated like other assets as zakat has already been collected from cryptocurrencies in the previous years. 

So, would the Zakat be something like the tithe? (although the thithe, as its name indicates, is usually 10%)

I think so, although in certain Christian religions, tithes aren't mandatory and 10% isn't required. They should be given from the heart. Other Christian religions, however, require 10%, although I don't think it is imposed strictly.

I'm of the belief that zakat isn't also imposed strictly. Aramco, for example, is worth almost $2 trillion. Do they pay $50 billion a year just for zakat? That's a huge amount considering that they also pay a much bigger amount for their income tax because they're under a dual tax system.

[Bd officer]

For Malaysian Muslims, Bitcoin is considered a halal digital currency from an Islamic perspective. There are many Muslim brothers and sisters who think that Bitcoin is forbidden from an Islamic perspective. For this reason, many are not willing to invest in Bitcoin. But Malaysia is the first country in the world to include Bitcoin in Zakat.

There is no discussion in the scriptures of Islam about cryptocurrency, there is no direct mention of whether cryptocurrency is halal or forbidden. I have seen the video of some scholars of our country, some say that cryptocurrency is forbidden. Some scholars call it halal. Many scholars have termed Bitcoin as forbidden from an Islamic perspective with various arguments. I still don't know the exact information whether bitcoin is halal or haram in Islam. But those who see Bitcoin as gambling, it is their wrong idea, Bitcoin is not like gambling. However it is good news that Malaysia levied zakat on bitcoin, maybe they consider bitcoin as halal.

[Oluwa-btc]

For Malaysian Muslims, Bitcoin is considered a halal digital currency from an Islamic perspective. There are many Muslim brothers and sisters who think that Bitcoin is forbidden from an Islamic perspective. For this reason, many are not willing to invest in Bitcoin. But Malaysia is the first country in the world to include Bitcoin in Zakat.

The Muslims has been one strong traditional religion that're strict and committed with their religion beliefs.
What I don't understand in that perspective view if bitcoin is permissible or forbidden based on their beliefs and yet their governments are facilitating on accepting bitcoin on the zakat custom.
That mentality is doing those fellows stepping back from investing on bitcoin no good but a setback because bitcoin hasn't been an illicit potential of breaching religious practices neither does it portrays indecent potentials.

It seems like a joke to me but in the long run,the Muslims are very intentional about their beliefs.They're obsessed with what they believe over their finances.Some of them literally thinks there's a serious repercussions to investing perhaps investing in Bitcoin.
Their belief and fear of Bitcoin is as though their ancestors had a bad experience with Bitcoin years back because the decision and the disengagement is dually unbelievable and unreasonable to comprehend.

[Ndabagi01]

According to the news, it is not only bitcoin that will be allowed in Zakat, also other cryptocurrencies will be allowed. If Muslim forbids gambling, I think they should also forbid cryptocurrencies expect just fees ones like bitcoin. Others like memecoins are very risky just like gambling.

If you’ve not used any of these money (cryptocurrencies) to gamble, then you can’t call it forbidden from the Muslim perspective. If it was not written or subjected to be prohibited by the jurisdiction of Islam, you can’t use your own view and perspective to justify your own views that it should be forbidden. Memecoins are risky and if you haven’t gamble with it, you can’t call the money earned from such coins to be money related to gambling. Memecoins are very volatile and are highly susceptible to risk, but even it not been so, any other coin can be volatile and price fluctuates from time to time and not bitcoin is left out of this category.