In a landmark ruling, the Madras High Court has formally recognized cryptocurrency as a form of “property” under Indian law — a decision expected to significantly strengthen investor protection and shape the future of digital asset regulation in India.
The judgment, delivered by Justice N. Anand Venkatesh, is being hailed as a watershed moment for India’s evolving crypto jurisprudence.
Recognition of Crypto as Property
The ruling arose from a petition filed by an investor whose XRP holdings on the WazirX exchange were frozen following a 2024 cyberattack. In his verdict, Justice Venkatesh clarified that while cryptocurrencies are neither tangible assets nor legal tender, they qualify as 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,” creating a stronger legal foundation for ownership and protection of cryptocurrencies in India.
Implications for Investor Rights and Legal Jurisdiction
The judgment establishes a crucial precedent by affirming that Indian courts have jurisdiction under Section 9 of the Arbitration and Conciliation Act, even when disputes are linked to foreign arbitration proceedings, provided that the assets or investors are based in India.
This clarity offers a framework for domestic investors seeking legal redress in crypto-related disputes. Legal experts have described the verdict as a major boost for investor confidence, as it reinforces custodial accountability and ownership clarity within decentralized financial systems.
Rejection of the ‘Socialisation of Losses’ Scheme
One of the most significant aspects of the ruling was the rejection of the “Socialisation of Losses” proposal, part of a Singapore court-approved restructuring scheme.
The High Court ruled that user assets cannot be redistributed to cover the losses of other users or entities, emphasizing that digital holdings are held in trust for their rightful owners. This decision safeguards the interests of Indian investors, ensuring that their crypto assets remain protected under domestic law, even in cross-border restructuring cases.
Exam-Oriented Facts
- Date of ruling: October 26, 2025
- Court: Madras High Court
- Judge: Justice N. Anand Venkatesh
- Case: Petition involving frozen XRP holdings on WazirX
- Key legal reference: Section 9, Arbitration and Conciliation Act
A Defining Moment for India’s Crypto Jurisprudence
Industry observers have described the judgment as a “defining moment” for India’s crypto landscape.
Sharat Chandra, blockchain policy analyst, noted that the ruling sets a jurisdictional benchmark for Web3 and crypto platforms that operate across borders but serve Indian users.
By aligning the legal interpretation of cryptocurrencies with traditional property law principles, the Madras High Court has laid the first clear judicial foundation for recognizing crypto assets as bona fide proprietary rights within India’s legal and regulatory framework.