Madras High Court recognises crypto as property under Indian law
The Madras High Court has declared that cryptocurrencies are “property” under Indian law, giving their holders the same legal protections as those of owners of material or monetary goods.
Local media has reported that the judgment, delivered by Justice N. Anand Venkatesh in Rhutikumari v. Zanmai Labs Pvt. Ltd and Ors., marks the first time an Indian court has extended property rights to crypto assets, offering long-awaited clarity in a country where digital ownership remains largely unregulated.
“There can be no doubt that cryptocurrency is a property,” Justice Venkatesh wrote. “It is not a tangible property, nor is it a currency. However, it is a property capable of being enjoyed and possessed in a beneficial form, and capable of being held in trust.”
Background: WazirX hack and investor dispute
The decision is the outcome of a petition submitted by Rhutikumari, a Chennai-based investor who bought 3,532.30 XRP tokens for ₹1.98 lakh ($2,375) in January 2024 through WazirX, the biggest cryptocurrency exchange in India run by Zanmai Labs Pvt. Ltd.
In July 2024, WazirX suffered a $230 million cyberattack, leading the platform to freeze all user withdrawals. The investor sought legal protection to stop WazirX from dispersing her holdings while the company was undergoing restructuring in Singapore, claiming that her XRP currencies were different from the stolen Ethereum-based tokens.
Zanmai Labs and its directors contested her claim, asserting that the Singapore-based parent company Zettai Pte Ltd had jurisdiction and that all users were required to share losses under a Singapore court order.
Justice Venkatesh rejected this argument, ruling that the Madras High Court had jurisdiction since the transactions were made in India through an Indian bank account.
“In the present case, it is the first respondent [Zanmai Labs], which got registered as a reporting entity and is authorised to handle cryptocurrency in India. Neither Zettai nor Binance is registered as a reporting entity in India,” the judgment noted.
Court: Crypto possesses all qualities of property
The Court determined that cryptocurrencies fit the legal criteria of property since they are recognisable, transportable, and solely controlled by private keys. Justice Venkatesh also referenced Section 2(47A) of the Income Tax Act, 1961, which classifies crypto as a “virtual digital asset” rather than a speculative transaction.
Relying on earlier Supreme Court precedents—including Ahmed G.H. Ariff v. Commissioner of Wealth Tax (1970) and Jilubhai Nanbhai Khachar v. State of Gujarat (1995)—the Court reaffirmed that property encompasses “every possible interest which a person can acquire, hold, and enjoy.”
Implications for India’s digital economy
The verdict is anticipated to have major implications for the country’s digital asset legislation, investor protection, and cryptocurrency sector. The High Court’s recognition of cryptocurrency as property has established a legal basis for investors to pursue compensation in situations involving cross-border restructuring, mismanagement, or hacking. It also strengthens the jurisdictional authority of Indian courts over domestic crypto disputes, even when foreign entities are involved.
Legal experts say the decision brings India in line with global standards where digital assets are treated as property, not speculative instruments. It could also prompt lawmakers and regulators—such as the Reserve Bank of India (RBI) and the Finance Ministry—to fast-track comprehensive crypto legislation.
Justice Venkatesh concluded that Web3 and crypto businesses must adhere to corporate governance norms, including segregated client funds, independent audits, and robust KYC and AML compliance.
“Courts now play a key role in defining rights, responsibilities, and trust in the digital economy,” he stated.
In related news, India is moving closer to introducing a central bank-backed digital currency (CBDC), designed to simplify transactions, reduce paper use, and offer faster, traceable payments built on blockchain technology. According to several media reports, Piyush Goyal, the minister of commerce, has announced that India will soon introduce a digital currency that is insured by the Reserve Bank of India (RBI).
In separate news, according to the sixth Chainalysis Global Crypto Adoption Index, India ranked first in cryptocurrency adoption for 2025. The United States comes in second, indicating a rise in activity in both nations. The research shows, market trends are being influenced by institutional investment and grassroots usage. India leads in all measured categories, including retail and institutional flows. The US rise is linked to higher institutional involvement following the approval of spot bitcoin ETFs. Pakistan, Vietnam, and Brazil complete the top five
