Madras High Court Declares Cryptocurrency as Property Under Indian Law

• The Madras High Court has officially recognised cryptocurrency as a form of “property” under Indian law, marking a key development in India’s crypto regulation. The ruling, delivered by Justice N. Anand Venkatesh, came in response to a petition involving frozen XRP holdings on the WazirX exchange following a 2024 cyberattack.

Crypto Recognised as Property

• The court clarified that while cryptocurrency is not legal tender, it qualifies as property that can be owned, possessed, and held in trust. This interpretation brings digital assets under existing property laws and aligns with the Income Tax Act’s definition of “virtual digital assets.”

Investor Protection and Legal Jurisdiction

• The judgment affirmed that Indian courts have jurisdiction under Section 9 of the Arbitration and Conciliation Act in crypto-related disputes, even when foreign arbitration is involved. This provides a legal pathway for Indian investors to seek remedies in domestic courts, boosting confidence and accountability in the digital asset space.

Rejection of ‘Socialisation of Losses’

• The court rejected a Singapore Court-approved proposal that sought to redistribute user assets to offset other losses. It ruled that digital assets belong solely to their rightful owners and must be held in trust, ensuring investor protection in cross-border cases.

Exam-Oriented Facts

• Judgment date: October 26, 2025

• Delivered by: Justice N. Anand Venkatesh, Madras High Court

• Case involved: Frozen XRP holdings on WazirX

• Legal basis: Section 9 of the Arbitration and Conciliation Act

Significance

Legal experts have hailed the verdict as a defining moment for India’s crypto jurisprudence. By recognising cryptocurrencies as property, the court has laid the foundation for clear ownership rights, legal recourse, and stronger investor protection in India’s growing digital asset ecosystem.