Madras High Court Recognizes XRP as Property: A Landmark Ruling for India’s $10 Billion Crypto Market

India has taken a major step toward recognizing digital assets as legitimate financial property. The Madras High Court ruled that cryptocurrencies such as XRP qualify as property under Indian law. This historic verdict could reshape how millions of Indian investors hold, trade, and protect their crypto assets, marking a key shift in the nation’s journey toward blockchain regulation.

The case that sparked this decision involved Ajay Singh, an investor whose 3,532.30 XRP tokens were frozen on the WazirX exchange after a cyberattack in 2024. The attack, which reportedly caused losses of about $230 million in Ethereum-based tokens, raised questions about who truly owns digital assets stored on crypto exchanges and whether Indian courts could intervene when platforms operate under foreign jurisdictions.

What the Court Decided

Justice N. Anand Venkatesh, delivering the verdict, declared that cryptocurrency, though intangible, is legally property. He explained that property does not only refer to physical assets like land or gold but also to any valuable right or interest that can be owned, controlled, or transferred. Cryptocurrencies, therefore, meet this definition since they have value, can be possessed through private keys, and are recognized as transferable assets across digital platforms.

There can be no doubt that cryptocurrency is a property. It is not a tangible property, nor is it a currency. However, it is a property which is capable of being enjoyed and possessed (in a beneficial form). It is capable of being held in trust.-Justice Venkatesh

The court clarified that while cryptocurrency is not legal tender or currency, it can still be owned and protected under the law. This means Indian investors now have a stronger legal foundation to claim ownership, seek compensation in fraud cases, and defend their holdings during legal disputes or inheritance transfers. Justice Venkatesh cited international precedents, including New Zealand’s Ruscoe v. Cryptopia Ltd., which recognized digital tokens as a form of intangible property. This alignment with global legal standards strengthens India’s position as it develops clearer rules for digital assets.

The ruling also included interim protection for Singh, preventing WazirX operator Zanmai Labs and its directors from redistributing or reallocating his XRP tokens until the matter is fully resolved. This step protects the investor’s rights and ensures that exchanges operating in India remain accountable to domestic laws, even if registered abroad.

The decision gives Indian crypto investors long-awaited legal clarity. Until now, cryptocurrencies existed in a gray zone taxed as assets but lacking clear recognition as property. This uncertainty often left investors vulnerable in cases of hacks, exchange freezes, or inheritance disputes. By recognizing crypto as property, the court has effectively confirmed that digital tokens can be part of a person’s estate, transferred through wills, and protected under property laws. Legal experts believe this could encourage more institutional participation and pave the way for comprehensive national regulation.

Edul Patel, CEO of Mudrex, called the ruling a “major breakthrough” that will “enable recourse for victims of cybercrime and fraud.” He emphasized that while India still lacks a dedicated crypto law, this decision creates a legal path for ownership protection, consumer safety, and dispute resolution.

How India Compares Globally

India’s recognition of crypto as property places it alongside several other countries taking steps toward regulation and investor protection. The European Union’s MiCA (Markets in Crypto-Assets) framework and Singapore’s Payment Services Act have already set similar precedents.

 

Country/Region	Legal Status of Crypto	Key Focus
India	Recognized as property (Madras HC, 2025)	Ownership rights and legal protection
European Union	Recognized under MiCA (2024)	Licensing and consumer safeguards
Singapore	Regulated under PSA	Payments and anti-money laundering
New Zealand	Recognized as property (Ruscoe v. Cryptopia)	Insolvency and trust protection

 

This alignment with international norms could make India more attractive to blockchain startups and investors, provided taxation policies become more balanced.

While the ruling is a milestone, challenges remain. India still taxes crypto profits at 30%, with an additional 1% tax deducted at source (TDS) on transactions. If cryptocurrencies are treated as property, they may also become subject to inheritance or capital gains taxes, depending on how the government interprets this classification in future legislation.

Experts warn that without clearer national laws, state-level rulings may lead to inconsistent enforcement. Justice Venkatesh himself noted that India now has a chance to “craft a regulatory framework that encourages innovation while protecting consumers.”

A Turning Point for India’s $10 Billion Market

With over 100 million crypto users and more than $10 billion in estimated holdings, India is one of the largest crypto markets in the world. This court decision offers legitimacy and protection to a fast-growing community of investors and developers.

If followed by comprehensive legislation, India could move closer to becoming a regional leader in digital asset governance. The Madras High Court’s ruling is not just a legal clarification, it represents the beginning of a new era where cryptocurrencies in India are no longer treated as speculative instruments but as recognized, ownable assets protected under the law.