The ruling on zakat for cryptocurrencies and digital assets is obligatory as follows:

a) Cryptocurrencies and digital assets are included in the category of al-Mal (wealth) because they possess the characteristic of al-Mutaqawwim (having value). Therefore, they are subject to zakat based on the general evidences for zakat on wealth.

b) Cryptocurrencies are not considered legal tender, either in Shariah or under the law. However, they are categorized as investment assets or securities according to the Federal Government Gazette by the Ministry of Finance in 2019.

c) This ruling is not limited to cryptocurrencies and digital assets traded on Digital Asset Exchange platforms registered with the Malaysian Securities Commission, but applies generally for the obligation to pay zakat on them.

d) The zakat ruling and method of assessment for cryptocurrencies and digital assets are as follows:

1. 1. Cryptocurrencies and digital assets classified as Merchandise/Business Assets (Úrud Tijarah):
   The zakat ruling is analogized to the zakat on business goods (Úrud Tijarah).
2. 2. Cryptocurrencies and digital assets classified as Currency (As-Sarf):
   The zakat ruling is analogized to the zakat on currency.

Reference: Decision of the Selangor State Fatwa Committee dated 17 August 2021.