Madras High Court Recognises Cryptocurrency as Property Under Indian Law

In a historic decision, the Madras High Court has officially declared that cryptocurrency is a form of “property” under Indian law.
The judgment, given by Justice N. Anand Venkatesh, allows courts to handle cases related to crypto disputes and provides stronger protection for investors.

This is considered a landmark step in defining how India’s legal system treats digital currencies like Bitcoin, Ethereum, or XRP.

Madras High Court Recognises Cryptocurrency as Property Under Indian Law

Recognition of Crypto as Property

The case began when an investor’s XRP tokens on the WazirX exchange were frozen after a cyberattack in 2024.
In response, the Madras High Court ruled that:

• Cryptocurrency is not legal tender (not official money),
• But it qualifies as property — meaning it can be owned, transferred, or held in trust, just like any other asset.

The court also noted that this definition matches the Income Tax Act’s definition of “virtual digital assets.”

Impact on Investor Rights and Legal Jurisdiction

This ruling gives Indian courts the power to take up crypto-related disputes, even if the case involves foreign arbitration.

Under Section 9 of the Arbitration and Conciliation Act, Indian courts can now protect investor rights if the investors or assets are based in India.

Experts say this decision will:

• Strengthen investor confidence,
• Increase accountability of crypto exchanges, and
• Clarify ownership rights in the growing digital asset space.

Rejection of “Socialisation of Losses” Scheme

The court also rejected the “Socialisation of Losses” plan, which was approved earlier by a Singapore court.

That plan suggested that investors’ crypto assets could be redistributed to cover losses of other users.
The Madras High Court ruled against it, stating that:

“Digital assets belong to their rightful owners and cannot be used to pay others’ debts.”

This ensures that Indian investors’ crypto holdings remain protected, even in international bankruptcy or restructuring cases.

Exam-Oriented Facts

• Date of ruling: October 26, 2025
• Court: Madras High Court
• Judge: Justice N. Anand Venkatesh
• Case involved: Frozen XRP holdings on WazirX after 2024 cyberattack
• Key law cited: Section 9 of the Arbitration and Conciliation Act
• Main ruling: Cryptocurrency is recognised as “property” under Indian law
• Rejected proposal: “Socialisation of Losses” scheme

Importance of the Ruling

This judgment is being seen as a “defining moment” for India’s crypto regulation.

According to experts like Sharat Chandra, the decision:

• Sets a jurisdictional benchmark for Indian users on global crypto platforms,
• Aligns cryptocurrencies with property rights, and
• Establishes the first legal framework for treating crypto assets as legally owned property in India.

Question & Answer

Q1. Which court has declared cryptocurrency as ‘property’ under Indian law?
(a) Delhi High Court
(b) Madras High Court
(c) Bombay High Court
(d) Supreme Court of India
Answer: Madras High Court

Q2. Who delivered the judgment recognising cryptocurrency as property?
(a) Justice R. Subramaniam
(b) Justice N. Anand Venkatesh
(c) Justice K. Chandru
(d) Justice M. Sundar
Answer: Justice N. Anand Venkatesh

Q3. The case arose from frozen holdings of which cryptocurrency?
(a) Bitcoin
(b) Ethereum
(c) XRP
(d) Dogecoin
Answer: XRP

Q4. Which exchange was involved in the crypto dispute?
(a) CoinDCX
(b) WazirX
(c) ZebPay
(d) Binance
Answer: WazirX

Q5. Under which section did the court affirm jurisdiction in crypto disputes?
(a) Section 7 of IT Act
(b) Section 9 of Arbitration and Conciliation Act
(c) Section 12 of Companies Act
(d) Section 5 of RBI Act
Answer: Section 9 of Arbitration and Conciliation Act

Q6. What proposal did the court reject in its ruling?
(a) National Crypto Regulation Policy
(b) Blockchain Property Ownership Bill
(c) Socialisation of Losses Scheme
(d) Crypto Exchange Taxation Proposal
Answer: Socialisation of Losses Scheme

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