Madras High Court Declares Cryptocurrency as ‘Property’ Under Indian Law

The Madras High Court has formally recognised cryptocurrency as a form of “property” under Indian law, enabling courts to intervene in digital asset disputes and strengthening investor protection. The ruling, delivered by Justice N. Anand Venkatesh, is being seen as a watershed moment for India’s evolving crypto regulatory landscape.

Recognition of Crypto as Property

The court’s declaration arose from a petition filed by an investor whose XRP holdings on the WazirX exchange were frozen following a 2024 cyberattack. In its verdict, the bench clarified that although cryptocurrency is not a tangible asset or legal tender, it qualifies as a property that can be possessed, enjoyed, and held in trust. This interpretation aligns digital assets with existing property laws and the Income Tax Act’s definition of “virtual digital assets.”

Implications for Investor Rights and Legal Jurisdiction

The judgment sets a critical precedent by asserting that Indian courts maintain jurisdiction under Section 9 of the Arbitration and Conciliation Act, even when disputes are linked to foreign arbitration proceedings, provided the assets or investors are based in India. This provides a clear framework for domestic investors seeking redress in crypto-related disputes. Legal experts described the ruling as a major boost for investor confidence, affirming custodial accountability and clarifying ownership rights within decentralised financial systems.

Rejection of the ‘Socialisation of Losses’ Scheme

A key highlight of the decision was the rejection of the “Socialisation of Losses” proposal advanced through a Singapore Court-approved restructuring scheme. The court ruled that assets belonging to users cannot be redistributed to offset losses of other users or entities, emphasising that digital holdings are held in trust for their rightful owners. This establishes that Indian investors’ digital assets remain protected under domestic law, even in cross-border restructuring cases.

Exam Oriented Facts

• Madras High Court recognised cryptocurrency as ‘property’ on October 26, 2025.
• The ruling was delivered by Justice N. Anand Venkatesh.
• It arose from a petition involving frozen XRP holdings on WazirX.
• The court affirmed jurisdiction under Section 9 of the Arbitration and Conciliation Act.

A Defining Moment for India’s Crypto Jurisprudence

Industry experts hailed the ruling as a “defining moment” for crypto jurisprudence in India. Sharat Chandra, a blockchain policy analyst, noted that the judgment sets a jurisdictional benchmark for Web3 platforms operating across borders but serving Indian users. By aligning the legal interpretation of cryptocurrencies with principles of property law, the Madras High Court has provided the first clear judicial foundation for treating crypto assets as bona fide proprietary rights within India’s legal and regulatory framework.