Give Zakat in Cryptocurrencies

According to our understanding, Crypto currencies are Zakatable. One may pay 2.5% of their Crypto holdings as Zakat or alternatively, pay 2.5% Zakat in one’s domestic currency equivalent to the value of 2.5% of one’s Crypto holdings.

To learn more about why Zakat is due on Crypto currencies click below

Knowledge Bank – Zakat on Crypto Currencies

Fill in the Giving Form if you are giving using Crypto. In the giving form, you can let us know how you’re giving, when you gave or are giving, what you are giving (e.g. Zakat or Sadaqah), where you’d like your Zakat to go, the amount you are giving, whether we can claim gift aid, and how we can get in touch with you to thank you. We’ll email you a printable copy of your completed form.

If you can’t fill in the giving form for any reason, email [email protected] to let us know

• how you’re giving (bank transfer or cheque), and -if paying by bank transfer- bank reference,
• when you gave or are giving,
• what you are giving (e.g Zakat or Sadaqah),
• the amount you are giving,
• whether we can claim gift aid, and your name so we can get in touch with you to thank you.

Unless we hear otherwise, we’ll apply the ‘let NZF decide’ preferences for where your Zakat goes.

Giving Form

We’ve partnered up with BitPay, a leading Crypto platform. To give in Crypto, you will need to register with BitPay and confirm your identity using photo ID. The process usually takes a few minutes to complete.

While Cryptocurrency financial regulations are being developed, KYC (Know Your Customer) processes are required by Crypto platforms for compliance. NZF does not see your ID at any stage.

To tell us how you’d like us to use your donation eg. Zakat, Sadaqah etc. then please do so using our Giving Form.

Giving Form

Yes, we’ve selected a provider that we believe offers the best level of protection for our givers using two-factor authentication and AES encryption.

As with all online transactions you should take care when entering your information and follow reasonable security measure with your personal information.

A unique feature of the Crypto currencies is that all transactions where funds move from one wallet to another are publicly visible in a public ledger that forms the basis of the Crypto system – called the blockchain.

At present we have chosen to receive Crypto donations directly as a pilot scheme. Once the infrastructure and providers in the field mature, and, assuming there is demand, we will review integrating Crypto into our standard donation pages.

Your Crypto donation is converted to GBP at the point of transaction, so the GBP value of your Crypto when you give your donation will be the same amount NZF receives.

When we receive your Zakat payment, we take receipt on behalf of the beneficiaries. This receipt signifies your Zakat obligation being discharged. 

To learn more about when your duty to pay Zakat is discharged click below

Knowledge Bank – When is my duty to pay Zakat discharged?

When you pay your Zakat on your Crypto holding, you can pay your 2.5% using Crypto, just like you would when you pay in Sterling for any Sterling you have. So if you hold 1 BTC, your Zakat liability is 0.025 BTC.

This is the easiest and most cost-efficient way of paying your Zakat on Crypto currencies.

If you have any questions about how to give in Crypto, please contact Rizwan at [email protected]