Chennai | In a historic verdict, the Madras High Court has ruled that cryptocurrencies will be treated as “property” under Indian law, even though they do not hold the status of legal tender. The judgment marks a major milestone in defining the legal framework around digital assets in India.
The ruling came in a case involving an investor’s XRP coin holdings, which had been frozen on the WazirX cryptocurrency platform following a cyberattack. Delivering the judgment, Justice Anand Venkatesh clarified that while cryptocurrencies are not physical assets or official currency, they possess all the essential characteristics of property.
“Cryptocurrency is neither a tangible asset nor a currency,” observed Justice Venkatesh, “but it is a form of property that can be held by an individual or kept in trust.”
The court directed the concerned company not to redistribute or transfer the disputed XRP holdings until the ongoing arbitration process reaches its final conclusion.
Legal experts have hailed the decision as a path-breaking step that provides long-awaited clarity on the status and ownership rights of digital assets in India. They believe this recognition will strengthen investor protection and enhance accountability in cryptocurrency transactions.
Industry analysts note that this ruling could influence future policy decisions by financial regulators and lawmakers, potentially paving the way for comprehensive crypto legislation in India.
While the Reserve Bank of India (RBI) has previously warned against cryptocurrency trading, the Madras High Court’s acknowledgment of crypto as a form of property is expected to reshape discussions around taxation, inheritance, and asset protection in the digital economy.
The verdict, experts say, signals India’s gradual shift toward legal recognition of virtual assets, balancing innovation with investor security — a crucial step as the country navigates the future of digital finance.
