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- Madras High Court rules cryptocurrencies, including XRP, are property under Indian law.
- Decision grants enforceable ownership rights and aligns India with global crypto legal trends.
- Court urges balanced regulation to protect investors while promoting innovation.
The Madras High Court has officially recognized cryptocurrencies, including XRP, as property under Indian law. Justice N. Anand Venkatesh ruled that digital assets meet the key criteria of property—they are identifiable, transferable, and controllable via private keys—granting holders enforceable ownership rights.
The Case That Set the Precedent
The ruling emerged from a lawsuit linked to the 2024 cyberattack on crypto exchange WazirX. Plaintiff Rhutikumari sought legal protection for 3,532.30 XRP tokens affected by the incident. While some Ethereum-based assets were lost, her XRP holdings remained recoverable. The court ordered WazirX not to interfere with the tokens until arbitration concludes. Justice Venkatesh emphasized that cryptocurrencies, though intangible, can be “owned and enjoyed beneficially,” equating them with traditional property rights.
Legal Framework and Implications
The judgment draws on Section 2(47A) of India’s Income Tax Act, which classifies cryptocurrencies as Virtual Digital Assets (VDAs). By confirming that these assets are uniquely identifiable and controlled via private keys, the court grants owners enforceable rights, including protection against unauthorized access.
This ruling has broad implications, laying the groundwork for future laws on inheritance, custodial responsibilities, and taxation of digital assets. Investors and exchanges now have greater legal clarity, fostering confidence in India’s emerging Web3 ecosystem.
Aligning with Global Precedents
Justice Venkatesh referenced several international rulings, including Ruscoe v. Cryptopia (New Zealand, 2020), AA v. Persons Unknown (UK, 2019), and SEC v. Ripple Labs (US, 2023), which similarly recognized crypto assets as property. This alignment with global legal trends positions India as part of a growing international consensus on digital asset rights.
Also Read: Corporate Treasuries Eye XRP for FX Hedging — Analysts Predict Price Surge to $25–$120
The court also urged lawmakers to create a regulatory framework that protects investors while promoting innovation. Although cryptocurrencies remain outside legal tender definitions, this ruling strengthens the legitimacy of digital assets, boosting confidence among investors, developers, and startups in India’s fast-growing crypto sector.
By formally recognizing cryptocurrencies as property, the Madras High Court has set a critical precedent for digital ownership, offering clarity and protection in India’s evolving financial landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
