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- Madras HC confirms XRP as property, legally protected under Indian law.
- Court rejects WazirX claims; Indian jurisdiction upheld for domestic crypto holdings.
- Judgment sets higher governance and compliance standards for crypto exchanges.
The Madras High Court has officially recognized XRP and other cryptocurrencies as property under Indian law. Justice N. Anand Venkatesh ruled that crypto assets are “recognizable, movable, and manageable” through private keys, making them unique forms of property. Importantly, the court barred exchanges from redistributing investors’ XRP holdings, a key win for crypto users in India.
The case stemmed from the 2024 WazirX hack, where roughly $230 million worth of Ethereum and ERC-20 tokens were stolen. An XRP investor, whose holdings were unaffected by the hack, sought legal protection to prevent her funds from being treated as part of the stolen assets. The court agreed, distinguishing XRP from Ethereum-based tokens and confirming that digital assets have quantifiable ownership rights.
Court Rejects WazirX’s Claims, Asserts Indian Jurisdiction
Justice Venkatesh dismissed claims by Zanmai Labs, the operator of WazirX, which argued that a Singapore court order required losses to be shared among users. The judge clarified that Indian courts could protect assets held within India, as the XRP transaction involved an Indian bank account. The ruling reinforces that domestic courts have authority over crypto holdings, even in cases linked to foreign arbitration.
The court also emphasized that cryptocurrencies in India are no longer seen merely as speculative instruments. Under Section 2(47A) of the Income Tax Act, 1961, crypto assets are classified as virtual digital assets—formalizing their legal and financial recognition.
Also Read: XRP Price Jumps 11% as Whales Accumulate — Can Ripple Break the $3 Barrier?
Governance and Compliance: A New Standard for Exchanges
The judgment underscores the need for strong corporate governance in the crypto industry. Justice Venkatesh stressed that exchanges must separate client funds, allow independent audits, and maintain robust KYC and anti-money-laundering standards. The ruling positions Indian courts as pivotal in shaping the regulatory and operational standards for the digital economy.
Following the decision, XRP’s price surged over 10% in the weekly rally, reaching $2.65, reflecting renewed investor confidence. This milestone not only secures the rights of individual investors but also sets a precedent for how cryptocurrencies are treated legally in India.
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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
