The Madras High Court has officially recognized cryptocurrency as “property” under Indian law, declaring it an asset that can be owned, enjoyed, and even held in trust. This ruling marks one of the strongest legal validations of digital assets in the country so far.
‘Crypto Is Property, Not Currency’: Court Clarifies
The decision, delivered by Justice N Anand Venkatesh, stated that while cryptocurrencies are not tangible or legal tender, they qualify as property since they carry exchangeable value and ownership rights.
“There can be no doubt that cryptocurrency is a property. It is not a tangible property, nor is it a currency. However, it is capable of being enjoyed, possessed, and held in trust,” the court observed.
To support this interpretation, the bench referred to earlier Supreme Court rulings such as Ahmed GH Ariff vs CWT and Jilubhai Nanbhai Khachar vs State of Gujarat, which had expanded the meaning of “property” in Indian law to include all valuable rights and interests.
Justice Venkatesh further pointed out that cryptocurrencies come under the category of “virtual digital assets” as defined in Section 2(47A) of the Income Tax Act, 1961, and thus cannot be dismissed as speculative or unregulated holdings.
The judgment stemmed from a petition filed by a woman whose 3,532.30 XRP coins stored on the WazirX exchange were frozen after a cyberattack in 2024.
Recognising her holdings as legitimate property, the court barred interference until arbitration proceedings were completed.
Justice Venkatesh explained that though cryptocurrencies exist only as “streams of 1s and 0s on a blockchain,” they still constitute assets that can be owned, stored, and transferred, just like other forms of intangible property.
“India must develop a framework that encourages innovation in the digital economy while protecting consumers and ensuring financial stability,” he added.
Global Context
Court’s reasoning aligns with international legal precedents, including the New Zealand High Court’s ruling in Ruscoe vs Cryptopia Ltd (2020), which classified cryptocurrencies as intangible property.
Courts in the UK (AA vs Persons Unknown, 2019), Singapore (ByBit Fintech Ltd v Ho Kai Xin, 2023), and the US (SEC vs Ripple Labs, 2023) have similarly recognised crypto assets as property or commodities.
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