The Madras High Court recognized cryptocurrency as “property” under Indian law. This is one of the most important legal outcomes in India’s digital asset space to date. Key aspects of a landmark ruling:
On October 25, 2025, Justice N Anand Venkatesh of the Madras High Court concluded in the Rhutikumari v. Zanmai Labs Pvt Ltd case that cryptocurrency is property that can be owned and passed into trust. The court said:
“There is no doubt that cryptocurrency is a property. It is not a physical property and not currency. Nonetheless, it is a property that the holder can enjoy and possess. It can be placed in trust.”
In this way, crypto assets acquire proprietary and possessory rights – they can be legally defended, transferred, and restituted on Indian territory, in matters of law, like any other property.
Background of the Case
The case was brought by the petitioner, an investor Rhutikumari, who had bought 3,532.30 XRP coins worth Rs1.98 lakh in the WazirX exchange this processing being done in January 2024. In July 2024, WazirX declared of a large-scale cyberattack that damaged its cold wallets exceeding $230 million comprising of Ethereum and ERC‑20 coins necessitating the exchange to suspend operations and place all user accounts in suspension.
Although her coins were not part of the theft, she could not access her shares. The petitioner moved to the Honorable High Court by filing a petition under Section 9 of the Arbitration and Conciliation Act, 1996 for relief, to prevent the company from distributing and reallocating her shares in the company’s restoration process following a Singapore court order.
Court’s Legal Reasoning
What is digital currency, justice Venkatesh wondered, “Whether it is ‘property’ as per law.” “From Indian and international authorities including Ahmed GH Ariff [v CWT] (India), Ruscoe v Cryptopia Ltd (New Zealand) and AA v Persons Unknown (UK)” the Court noted cryptocurrencies satisfy fundamental property tests – definability, identifiability, transferability; and the fact that one can exclusively control and reduce access to them or disposes of them using encryption key in the usual result.
The judgment also mentions section 2(47A) of the Income Tax Act, 1961 that had already recognised cryptocurrencies as Virtual Digital Assets (VDAs). The Court observed that this categorization imparts to crypto assets a recognized, taxable status under Indian law there by reinforcing its status of property.
Implications for India’s Crypto Ecosystem
This verdict provides legal cover for crypto investors and shows that Indian courts will protect ownership of digital assets even in cases where exchanges are being cyber attacked or going through international insolvency processes.
- Legal experts believe the ruling as a game changer for India’s crypto ecosystem because:
- It is a legal precedent in the courts, meaning it upholds the idea that digital assets are your property.
- It pushes exchanges like WazirX to act as custodians, rather than owners of users’ funds.
- It also paves the way for Indian regulators to recognize crypto ownership structures under property and trust laws.
Broader Context
Cryptocurrencies continue to lack regulatory oversight and they are not accepted as legal tender in India, but this verdict bars the doubt that these assets have some form of legal value or proprietary right, creating a jurisprudence void on digital asset being filled.
The news is being celebrated by many as a “judicial milestone” which brings India in line with other forward-thinking jurisdictions that recognize the legal existence of cryptocurrencies as more than just another form of speculation.