THE Federal Territories Islamic Religious Council Zakat Collection Centre (PPZ-MAIWP) launched the Digital Asset Zakat Payment Channel on Dec 18 in Kuala Lumpur, as its latest initiative to facilitate the fulfillment of zakat obligations in the era of the digital economy.
The 134th meeting of the Federal Territories Shariah Advisory Committee concluded that digital currency is a tradable commodity. That means ownership or trading of digital currency requires business zakat to be paid at a rate of 2.5%.
PPZ-MAIWP chief executive officer Datuk Abdul Hakim Amir Osman stated that with advancements in blockchain technology and the growing use of digital assets such as cryptocurrencies, digital tokens and NFTs (Non-Fungible Tokens), there is a need to guide Muslims on zakat obligations related to these assets.
"Individuals can now pay zakat directly using cryptocurrency. This initiative aligns with technological progress and ensures that no one is excluded from fulfilling their zakat obligations, regardless of the form of assets they own," he explained.
According to the Securities Commission, Malaysians collectively own digital assets valued at RM16bil, with 54.2% of investors aged between 18 and 34. The transformation in worship practices through digital mediums is a testament to Islam's adaptability to meet the current needs of its followers.
In 2023, digital asset zakat collections increased by 73%, amounting to RM25,983.91, compared to RM44,991.97 collected from January to date in 2024. This rise reflects growing awareness among the public about zakat on digital assets.
To initiate the digital asset zakat payment channel, PPZ-MAIWP has appointed Sharlife Sdn Bhd as the first zakat collection agent to use cryptocurrency. Individuals can conveniently fulfill their digital asset zakat obligations through the Sharlife.my portal.
Sharlife offers Shariah-compliant digital asset screening services using a comprehensive methodology. With this appointment, PPZ-MAIWP became the first zakat institution in the country to provide such payment services using digital assets, introducing a cutting-edge innovation in zakat practices.
PPZ-MAIWP encourages the public to fulfil their zakat obligations by Dec 31 to enjoy a 100% income tax rebate and stand a chance to win various exciting prizes.
For updates on campaign activities, follow PPZ-MAIWP on social media or visit www.zakat.com.my/yez2024.
