• Madras High Court confirms crypto can be owned and held in trust.
• WazirX has been barred from redistributing investors’ unaffected XRP holdings.
• Ruling strengthens investor rights and Web3 governance in India.

In a landmark ruling that could reshape cryptocurrency in India, the Madras High Court has declared that cryptocurrencies qualify as property under Indian law.

The Court’s decision, delivered by Justice N. Anand Venkatesh, affirms that cryptocurrencies can be owned, held in trust, and protected as legal property — a major step in clarifying the legal status of digital assets in the country.

Cryptocurrency in India now recognised as property

The case arose from a petition by an investor whose 3,532.30 XRP coins were frozen after a cyberattack on WazirX, one of India’s largest cryptocurrency exchanges.

In July 2024, the platform suffered a $234 million hack involving Ethereum and ERC-20 tokens.

While the investor’s XRP holdings were not part of the stolen assets, WazirX sought to redistribute all users’ funds under its so-called “socialisation of losses” plan.

Justice Venkatesh firmly rejected the proposal, ruling that each investor’s digital holdings are individual property and cannot be diluted or redistributed to cover exchange losses.

He emphasised that cryptocurrencies, though intangible, possess all the essential attributes of property — they are identifiable, transferable, and exclusively controlled through private keys.

“It is not a tangible property nor is it a currency,” the judge observed. “However, it is a property, which is capable of being enjoyed and possessed in a beneficial form.”

This interpretation grants digital asset holders stronger legal standing, ensuring that their cryptocurrencies are recognised as assets protected under Indian law.

Jurisdiction and investor protection

The Court also settled questions over jurisdiction, dismissing WazirX’s argument that Singaporean arbitration rules applied because its parent company, Zettai Pte Ltd, is based in Singapore.

Justice Venkatesh cited the Supreme Court’s earlier decision in PASL Wind Solutions Pvt Ltd v. GE Power Conversion India Pvt Ltd (2021), noting that Indian courts have authority over assets located within India.

Because the investor’s transactions originated from Chennai and involved an Indian bank account, the Court confirmed that the case fell squarely under Indian jurisdiction.

The court further highlighted that Zanmai Labs Pvt Ltd, which operates WazirX in India, is registered with the Financial Intelligence Unit (FIU) — unlike its foreign parent company or Binance.

This distinction reinforced that Indian exchanges operating domestically are subject to Indian oversight and accountability, particularly in protecting user assets and maintaining transparent custodial practices.

Strengthening Web3 governance

Justice Venkatesh’s decision went beyond individual relief to call for higher standards of corporate governance in the Web3 and crypto sectors.

He urged exchanges to maintain separate client funds, conduct independent audits, and uphold robust KYC and anti-money laundering controls.

These measures, the Court noted, are vital for building trust in the digital economy and protecting consumers from future mishandling of assets.

Legal experts hailed the judgment as a milestone in developing “crypto-jurisprudence” in India.

Vikram Subburaj, CEO of Indian exchange Giottus, described it as a foundational moment that signals to all market participants — exchanges, users, and regulators — that the digital asset space will be held to strong standards of governance and protection.

A foundation for India’s crypto future

The Court’s ruling not only protects the rights of individual investors but also strengthens the broader regulatory framework around digital assets.

By recognising cryptocurrency as property, the judgment fills a crucial legal gap in a country where tax enforcement on crypto remains strict, but investor protections have lagged.

As Justice Venkatesh wrote, courts now serve as the “central stage where the future of digital value is debated.”

Through this ruling, the Madras High Court has given India a clearer picture of ownership, responsibility, and trust in the age of decentralisation.

With cryptocurrency in India now firmly recognised as property under Indian law, the decision marks a turning point for the country’s digital asset ecosystem — affirming that in India, crypto holdings are not just speculative instruments but protected assets under the law.

Mudrex, a U.S.-headquartered crypto investment firm based in India, plans to offer Indian investors access to U.S. spot Bitcoin exchange-traded funds (ETFs). This will not only enable Indian investors to invest in Bitcoin security via financial giants such as BlackRock and Fidelity but will also help spot Bitcoin ETFs to capitalize on the potential in India.

Mudrex is a 100% compliant with Indian regulations and registered with Financial Intelligence Unit (FIU) of India. It allows users to invest in over 350 crypto and crypto baskets, with actionable insights.

Indian Investors Can Invest in US Spot Bitcoin ETFs

Indian investors can buy crypto ETFs through Indian exchanges or through the Liberalised Remittance Scheme (LRS) route, which will incur a 20% tax collected at source (TCS) on remittance. Mudrex plans to use the route to offer the services.

With $250,000 in a year as a limit in LRS, Mudrex plans to offer the advantage of investing in spot bitcoin ETFs with a minimum investment of $5,000 and a maximum of $250,000. Whereas, when investors use crypto exchanges in India, it involves a 1% TDS on transfer of crypto assets and a 30% tax on profits.

Edul Patel, CEO and co-founder of Mudrex, in an interview with CoinDesk said “We are certainly the first Indian crypto platform to offer this service. The LRS is the tricky part for most people and over there (in the U.S.), because we also have strong banking relationships, we’re able to help users do these transactions in a very seamless way, and that’s why these services are important.”

Patel added that the service will be more valuable to institutional investors. The first four spot Bitcoin ETFs in the plan include BlackRock iShares Bitcoin ETF (IBIT), Fidelity Wise Origin Bitcoin ETF (FBTC), and Franklin Templeton Bitcoin ETF (EZBC).

Also Read: Ripple CTO Spotlights XRP’s Gradual Appreciation Potential Amid Price Slump Concerns

BTC Price Gains Momentum

BTC price jumped 4% in the past 24 hours, with the price currently trading at $71,597. The 24-hour low and high are $67,194 and $71,830, respectively. Furthermore, the trading volume has increased by 70% in the last 24 hours, indicating a rise in interest among traders.

Bitcoin continues to hit new highs amid renewed sentiment and declining macro impact. Traders are going long on Bitcoin and Ethereum as per Coinglass data. Bitcoin analyst Willy Woo predicted that BTC price can hit the upper bound of $337k as Bitcoin surpassed over $71K.

Also Read: Bitcoin (BTC) Price Breaches Above $71K, ETH Clinches New High, Here’s Why

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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