A proposed zakat model for digital assets from the Shariah perspective

Muhammad Ikhlas Rosele, Abdul Muneem, Abdul Karim Ali, Azizi Che Seman, Luqman Haji Abdullah, Noor Naemah Abdul Rahman and Mohd Edil Abd Sukor

International Journal of Islamic and Middle Eastern Finance and Management, 2025, vol. 18, issue 3, 489-511

Abstract: Purpose - The purpose of this study is to propose and develop a zakat model for digital assets from the Sharīʿah perspective. Design/methodology/approach - This research adopts a qualitative research method while studying the literature thoroughly, and it analyzes the data through an exploratory research approach to propose a zakat model for the digital assets. Findings - This research aims to develop a zakat model for digital assets within the framework of Sharīʿah. Using a qualitative research method, the study thoroughly examines existing literature and uses an exploratory research approach to propose this zakat model. The findings suggest that digital assets hold the potential to be considered for zakat in the contemporary digital age. Previous studies indicate that both commodity-based and currency-based digital assets meet the criteria for zakat imposition. Given zakat’s significant impact on socioeconomic development, it is imperative to carefully manage these assets to maximize their potential benefits. However, variations in interpretations by different jurisdictions and Sharīʿah scholars regarding the understanding and classification of digital assets lead to ongoing scrutiny from legal and religious perspectives. This research aims to contribute to the discourse by proposing a zakat model for digital assets and identifying potential assets eligible for zakat. Originality/value - This research seems to be the pioneer in providing a zakat model for digital assets, combining different segments of digital assets.

Keywords: Digital assets; Digital tokens; Digital currency; Cryptocurrency; Zakat; Model; Shariah (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:imefmp:imefm-08-2024-0408

DOI: 10.1108/IMEFM-08-2024-0408

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