In a landmark judgment, the Madras High Court has officially recognised cryptocurrency as a form of property under Indian law — a first-of-its-kind ruling that significantly strengthens investor protection and legal clarity in India’s digital asset ecosystem.
Crypto Recognised as Property
Delivering the verdict, Justice N. Anand Venkatesh ruled that while cryptocurrencies are not legal tender or tangible goods, they qualify as property that can be possessed, enjoyed, and held in trust. The judgment arose from a case involving frozen XRP holdings on the WazirX exchange following a 2024 cyberattack.
This interpretation aligns digital assets with the Income Tax Act’s definition of “virtual digital assets”, marking a major step toward integrating crypto within India’s existing property and taxation framework.
Investor Protection and Jurisdiction
The court affirmed that Indian courts retain jurisdiction under Section 9 of the Arbitration and Conciliation Act, even when disputes involve foreign arbitration, provided the investors or assets are based in India. Legal experts called this a critical precedent ensuring domestic redressal mechanisms for crypto-related disputes.
Rejection of ‘Socialisation of Losses’
The court also struck down a “Socialisation of Losses” scheme proposed under a Singapore restructuring plan, ruling that user assets cannot be redistributed to offset others’ losses. The decision reinforces that digital assets belong solely to their rightful owners, even in cross-border insolvency cases.
Exam-Oriented Facts
- Madras High Court recognised cryptocurrency as property on October 26, 2025.
- Judgment delivered by Justice N. Anand Venkatesh.
- Case involved frozen XRP assets on WazirX.
- Jurisdiction upheld under Section 9 of the Arbitration and Conciliation Act.
A Milestone for India’s Crypto Ecosystem
Experts hailed the verdict as a defining moment for India’s crypto jurisprudence. By granting cryptocurrencies the status of property, the High Court has laid the groundwork for clearer legal ownership, accountability, and cross-border protection — a crucial step toward legitimising digital assets within India’s financial and regulatory landscape.
