- The Madras High Court declared cryptocurrencies as property, granting them protection under Indian law.
- Holders can now claim remedies in fraud, inheritance, taxation, and contract disputes involving crypto assets.
- The ruling strengthens India’s digital asset ecosystem amid exchange recoveries and major crypto investments.
In a decisive move shaping India’s digital economy, the Madras High Court has ruled that cryptocurrency qualifies as property under Indian law. According to a local report, the court stated that virtual assets such as Bitcoin, XRP, and others are capable of being owned, transferred, and held in trust, granting them the same legal recognition as other forms of property. This interpretation came during a case involving the protection of 3,532.30 XRP tokens worth approximately $9,400, stored on the WazirX exchange, which suffered a $230 million cyberattack in July 2024.
Court Defines Digital Assets as Legal Property
Justice N Anand Venkatesh clarified that although cryptocurrency is intangible and not legal tender, it remains a form of property that individuals can possess and enjoy beneficially. He directed WazirX operator Zanmai Labs Private Limited to furnish a bank guarantee or deposit the equivalent value of the petitioner’s tokens in escrow until arbitration concludes.
The decision relied on interpretations from earlier Supreme Court judgments, including Ahmed G.H. Ariff vs. CWT and Jilubhai Nanbhai Khachar vs. State of Gujarat, which defined property as an aggregate of rights safeguarded by law. The court’s order provides long-awaited clarity for India’s digital asset community. Legal recognition of cryptocurrency as property ensures investors can pursue remedies in cases of fraud, misuse, or exchange collapse.
It also establishes a clearer framework for inheritance, bankruptcy, taxation, and contractual enforcement involving digital holdings. The ruling acknowledged that blockchain tokens, though composed of digital data, possess identifiable ownership, exclusivity through private keys, and transferable value, all hallmarks of property rights.
Parallel Developments in the Sector
The judgment coincides with renewed momentum in India’s digital asset market. The Singapore High Court recently approved the restructuring of Zettai Pte Ltd, the Singapore-based entity managing WazirX’s crypto operations.
Following this approval, the exchange is expected to resume activity within ten business days. In a separate development, Coinbase invested in CoinDCX, increasing the Indian exchange’s valuation to $2.45 billion.
Despite legal progress, India continues to impose stringent taxation on virtual assets. The government levies a 30 percent flat tax on all crypto income, a 1 percent tax deducted at source on transactions above ₹10,000, and 18 percent Goods and Services Tax on trading fees. Commerce Minister Piyush Goyal reiterated that while cryptocurrency trading is permitted, it remains at an investor’s own risk without government backing.
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