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Madras High Court Recognises Crypto as Property: What This Means for Indian Investors

Madras High Court Recognises Crypto as Property: What This Means for Indian Investors

India’s Madras High Court ruling grants cryptocurrencies property status, setting a precedent for digital asset ownership.

Written by Rahul Dhingra, Edited by Ketan Pratap | Updated: 27 October 2025 18:24 IST

Madras High Court Recognises Crypto as Property: What This Means for Indian Investors

Photo Credit: Unsplash/Kanchanara

Court decision brings long-awaited clarity to India’s crypto ownership

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Highlights

Court says crypto can be owned, transferred, and held in trust
Experts call it a milestone for investor protection in India
Ruling may face Supreme Court review on jurisdiction grounds

In a landmark decision that could reshape India's digital finance landscape, the Madras High Court has officially recognised cryptocurrency as property under Indian law. Judge N. Anand Venkatesh's decision, which gives India's growing cryptocurrency ecosystem a much-needed legal clarity, rules that digital assets like Bitcoin, Ethereum, and XRP can be owned, transferred, and held in trust. The judgment marks the first time an Indian court has directly classified cryptocurrency as a form of property, giving investors and businesses a firmer legal footing for transactions and dispute resolution.

Madras High Court Ruling Brings Legal Clarity to Digital Assets in India

The case that led to this ruling, Rhutikumari V. Zanmai Labs Ovt. Ltd (WazirX), involved a dispute over 3,532.30 XRP tokens allegedly transferred without authorisation from the petitioner's account on the WazirX exchange. The petitioner asked the court to recognise cryptocurrencies as property with legal protections to obtain judicial protection for her holdings.

In his judgment, Justice N. Anand Venkatesh ruled that while cryptocurrency is not legal tender, it possesses the essential characteristics of property as it can be owned, transferred, and held in trust. Furthermore, the court issued a temporary order that prohibited the contested assets from being transferred or dissolved in any way.

For Indian investors, this ruling provides stronger legal protection. It clearly establishes ownership rights and enables investors to seek legal recourse in cases of fraud, misuse, or exchange failures. Since exchanges will now have to adhere to stricter standards of transparency and custodial responsibility, just like traditional financial institutions, this development is anticipated to boost investor confidence in the market.

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Edul Patel, CEO of Mudrex, said the judgment marks a win for investor safety and signals the need for a balanced approach to regulation. “Moving forward, India's regulatory approach will need to find a balance between investor protection and technological advancement. A nuanced framework that differentiates between tokens used for governance, payments, or innovation will be essential to support responsible growth and position India as a forward-looking participant in the global digital economy,” Patel told Gadgets 360.

Avinash Shekhar, Co-Founder and CEO of Pi42, told Gadgets 360 that the ruling reflects a maturing perspective on digital assets within India's financial system. “ It suggests a maturing perspective on this evolving asset class and indicates that cryptocurrencies are beginning to be seen as having legitimate economic relevance within existing legal and financial frameworks. While it does not change the current regulatory landscape, the ruling could help create a more informed environment for investors and market participants,” Shekhar explained.

Legal expert Chandan Goswami, Partner at AT& Partners, noted in a LinkedIn post that while the decision is groundbreaking, it may still face scrutiny. “The ruling is not bulletproof. It could face scrutiny before the Supreme Court on several grounds. For instance, one may argue that the HC overstepped its jurisdiction by entertaining a Section 9 petition despite a foreign seat (read BALCO judgement) [...] How firmly it holds will depend on what the Supreme Court does if the order is challenged,” Goswami said.

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The Madras High Court's ruling represents a turning point in India's legal treatment of cryptocurrencies by bringing the country into line with nations like Singapore, the UK, and the US, where digital assets are acknowledged as property. However, questions remain about its long-term implications and whether the Supreme Court will uphold the interpretation.

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While some industry experts see the decision as a sign of maturity and advancement for India's digital asset ecosystem, others warn that the lack of a comprehensive regulatory framework may make legal recognition inadequate to guarantee market stability or investor safety.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Cryptocurrency, Crypto in India, crypto adoption, WazirX

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More