KUALA LUMPUR: Malaysia has become the first country globally to enable zakat payments using digital assets.
Federal Territories Islamic Religious Council's Zakat Collection Centre (PPZ-MAIWP) chief executive officer Datuk Abdul Hakim Amir Osman said this initiative aims to educate Muslims about their zakat obligations in the age of blockchain technology and cryptocurrency.
Buletin TV3 reported that this groundbreaking effort by PPZ-MAIWP is the latest initiative to streamline zakat payments.
Malaysians reportedly own digital assets valued at RM16 billion, which are subject to zakat.
"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.