India’s Madras High Court Grants XRP Legal Property Status, Boosting Crypto Clarity and Protection

In a pioneering interim ruling, India’s Madras High Court has officially recognized the cryptocurrency XRP as property under Indian law.

This landmark decision offers crucial legal clarity and protections for crypto investors, marking a historic step in India’s evolving digital asset landscape.

The court ruled that cryptocurrencies, though intangible, are "property capable of being possessed and held in trust," setting a precedent for how virtual digital assets are viewed in India.

This recognition comes amid a legal dispute involving WazirX, the country’s major crypto exchange, and an investor whose 3,532 XRP tokens were frozen following a cyberattack in 2024.

Court Supports Investor, Strengthens Crypto Ownership Rights

The ruling originated from the case of Rhutikumari vs. Zanmai Labs Pvt. Ltd., where the investor challenged WazirX’s plan to “socialize losses” among users after a $230 million hack drained assets from the exchange in mid-2024.

Justice N. Anand Venkatesh stated that XRP tokens are property, quoting India’s Income Tax Act and global precedents to affirm that digital currencies meet the legal standards for property ownership.

The court barred WazirX from reallocating the frozen XRP tokens and required the exchange to provide a financial guarantee of roughly $11,500 to protect the investor’s holdings.

It also rejected WazirX’s argument over arbitration jurisdiction, emphasizing that since the investor accessed the platform from India, Indian courts have proper authority over the dispute.

This makes India one of the rare jurisdictions—joining the U.S., U.K., and Singapore—to extend full property rights and protections to cryptocurrencies, allowing owners clear legal recourse when their digital assets are frozen or compromised.

What This Means for India's Crypto Market

This ruling establishes a formal legal framework for defining cryptocurrencies as property that belongs exclusively to the holder.

It strengthens investor protection by enabling courts to apply established property remedies, such as injunctions and recovery orders, to digital assets.

Indian crypto exchanges will likely need to reassess custody and asset management practices to align with this legal stance.

The clarification could also accelerate regulatory development by laying the groundwork for comprehensive crypto legislation in India.

By legally recognizing XRP as property, the Madras High Court has set a significant precedent that may soon influence rulings for other cryptocurrencies.

Investors now have a clear path to protect their digital holdings against theft, loss, or unfair redistribution.

This legal milestone aligns India with international market leaders that acknowledge the tangible value and ownership rights associated with virtual assets, supporting broader adoption and confidence in the digital economy.