Cryptocurrency: Madras High Court Recognizes Crypto as Property – What This Means for Investors

The Madras High Court has made a landmark ruling, recognizing cryptocurrency as a form of property under Indian law. This decision is significant for digital investors in India. The case involved an investor whose XRP tokens were frozen on the WizerX platform in 2024 following a cyberattack.

Major Relief for Crypto Investors

The interim order from the Madras High Court means that crypto assets in India will now receive protections similar to other immovable properties. While this is an interim order, it provides significant relief to investors. In case of cyberattacks, exchange failures, or any kind of malpractice, investors now have the legal right to claim compensation.

Crypto Meets Property Criteria

Legal experts consider this ruling a milestone for cryptocurrency in India. Ashutosh Srivastava, Partner at SKV Law Offices, stated, “The High Court has clarified that cryptocurrencies meet the criteria of ‘property.’ They can be held beneficially, used, or even placed in a trust.”

Legal Protection for Investors

Despite the absence of specific crypto regulations in India, this ruling ensures that investments in cryptocurrency now have legal protection. Investors can file complaints in case of any malpractice or fraud related to their holdings.

Applicability and Broader Implications

This ruling applies to lower courts in Tamil Nadu and may influence other High Courts. It aligns with the Supreme Court’s 2020 decision that lifted the RBI banking ban on cryptocurrency and recognized “Virtual Digital Assets (VDAs)” under the Income Tax Act (Sections 115BBH and 194S).

Regulation Still Unclear

Alay Rajvi, Managing Partner at Accord Juris, noted, “This is an important precedent recognizing cryptocurrency as property. It confirms that crypto can be bought, used, or held in a trust, providing legal protection for ownership, custody, and investor remedies. However, regulatory clarity at a formal level is still lacking.”