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Cryptocurrencies

Madras High Court Rules Cryptocurrencies as Property Under Indian Law

Strategic Insights

— 1 min read

The Madras High Court has delivered a significant ruling, declaring cryptocurrencies as property under Indian law. Justice N Anand Venkatesh explained that although cryptocurrencies are not physical objects or legal currency, they possess all the core features of property, making them a type of property that can be owned and held in trust. This decision has implications for the Indian cryptocurrency market, particularly in the wake of a cyberattack on the WazirX exchange, where an investor's assets were frozen.

Key Takeaways:

  • The Madras High Court has ruled that cryptocurrencies are considered property under Indian law, as per Section 2(47A) of the Income Tax Act, 1961, which recognizes them as "virtual digital assets."
  • Cryptocurrencies are identifiable, transferable, and controlled exclusively through private keys, making them a type of property that can be owned and held in trust.
  • The Court rejected the argument that the investor's XRP coins were not protected from the cyberattack, as they were not affected by the hack.
  • Justice Venkatesh pointed out that Web3 and crypto platforms must adhere to the same corporate governance standards as other businesses, with separate client funds, independent audits and strong KYC and anti-money laundering checks.
  • The Court dismissed the claim that it had no jurisdiction because the arbitration was seated in Singapore, as Indian courts can protect assets located in India.
  • Zanmai Labs, the operator of WazirX, is registered with India's Financial Intelligence Unit (FIU) and is authorized to handle cryptocurrencies in India.

Statistics:

  • $230 million: The value of Ethereum and ERC-20 tokens lost due to the cyberattack on WazirX.
  • 3,532.30 XRP coins: The amount of XRP coins owned by the investor.
  • 18.7.2024: The date when the WazirX platform was hacked and the cyberattack occurred.
  • 2021: The year when the Supreme Court delivered the decision in PASL Wind Solutions Pvt Ltd v. GE Power Conversion India Pvt Ltd.
  • 2025: The year when the IE Online Media Services Pvt. Ltd. published the article.

Sources:

  • [1] "Madras HC: Cryptocurrency is property under Indian law, rules," [The Indian Express, 2025]
  • [2] "WazirX axes investors' XRP holdings, loses contract; raises questions on transparency," [Business Standard, 2024]
  • [3] "PASL Wind Solutions Pvt Ltd v. GE Power Conversion India Pvt Ltd (2021)," [Supreme Court of India, 2021]

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