The Madras High Court has officially recognized cryptocurrency as property under Indian law, marking a pivotal moment for the nation’s digital asset landscape.
Justice N Anand Venkatesh ruled that crypto assets can be owned, enjoyed, and even held in trust, confirming their legal standing as intangible property. The decision stemmed from a case involving a WazirX hack that froze investor accounts after a $230 million cyberattack in July 2024.
The petitioner, who held 3,532.30 XRP worth Rs 1,98,516, sought protection when their funds were locked following the breach. Justice Venkatesh clarified that XRP holdings were unrelated to the stolen Ethereum-based tokens, dismissing Zanmai Labs’ claims that losses should be shared.
“There can be no doubt that cryptocurrency is property,” the court stated, emphasizing that it meets key characteristics—identifiability, transferability, and control via private keys.
Citing Section 2(47A) of the Income Tax Act, 1961, the judge noted that virtual digital assets already have statutory recognition in India. The court also rejected arguments invoking Singapore arbitration rules, affirming its jurisdiction since the transactions originated in Chennai using an Indian bank.
Justice Venkatesh further urged Web3 firms to adopt stronger governance, including client fund segregation, independent audits, and strict KYC and AML measures to protect investors and ensure accountability.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
