Madras HC calls crypto 'property': Here's what it means for investors
New Delhi, Nov 10, 2025
'Treating crypto as property upgrades investors from users to proprietors,' says expert after the Madras High Court granted digital assets legal status
Ina first, the Madras High Court has ruled that cryptocurrency qualifies as “property” under Indian law. The case stemmed from an investor's petition whose XRP tokens (a type of cryptocurrency) were frozen on WazirX (a cryptocurrency trading platform) following a cyberattack. The court held that crypto can be owned, enjoyed and held in trust like other assets, effectively granting digital investors legal protection and enforceable rights.
The ruling is “highly significant in providing legal recognition and protection to crypto assets,” said B Shravanth Shanker, an advocate practising in the Supreme Court.
He explained that the court categorised crypto assets as a “species of property capable of being enjoyed and held in trust,” aligning India with jurisdictions such as the UK and Singapore where Bitcoin has been treated as property.
The decision also clarifies that Indian courts can assume jurisdiction where investors transact or access platforms from India, offering recourse in disputes even when exchanges are registered abroad.
From ‘users’ to legal owners
For investors, this ruling changes their position from mere platform users to rightful owners.
“Treating crypto as property upgrades investors from users to proprietors with enforceable claims,” observed Alay Razvi, managing partner at Accord Juris. He said that investors can now seek injunctions to stop exchanges from freezing or redistributing tokens, demand restitution of holdings, and argue that assets held in trust be excluded from liquidation proceedings.
The Madras HC’s direction to WazirX to deposit the value of a user’s XRP tokens in an escrow account until arbitration concludes exemplifies how courts may protect investor interests during exchange disputes.
Shanker added that the decision allows investors to file for injunctions, claim fiduciary breaches, and challenge any scheme that tries to “socialise losses” by spreading one user’s loss across all account holders.
Strengthening investor protection and tax clarity
The judgment “represents a watershed moment for crypto holders in India,” said Ashutosh K Srivastava, partner at SKV Law Offices. He noted that the property classification extends existing protections, such as injunctions and trust claims, to digital assets, while reinforcing the taxation regime already defined under the Income Tax Act.
“By recognising crypto as ownable property, the judgment legitimises virtual digital asset taxation and strengthens the government’s position that such assets must be declared for tax purposes,” he added.
What lies ahead for regulation
While the verdict enhances investor rights, it also sets the stage for policy reform.
“This ruling grants clear ownership rights and legal recourse but highlights the urgency for nuanced regulation,” said Edul Patel, chief executive officer of Mudrex, a cryptocurrency investing platform. He believes India must “look beyond classifying crypto merely as an asset and recognise its role as technology that powers innovation.”
Although not a substitute for a dedicated regulatory framework, the Madras HC’s recognition of cryptocurrency as property provides a judicial foundation that could reshape investor protection and accountability in India’s digital asset ecosystem.
Key Takeaways for Investors
Crypto now has legal status as property: Investors can assert ownership rights and fiduciary protection under Indian law.
Stronger legal recourse: Holders can seek injunctions, restitution, and segregation of assets if exchanges freeze or misuse funds.
Investor protection in insolvency: Assets held in trust may be excluded from liquidation estates, protecting investors during exchange failures.
Taxation remains unchanged: Gains on virtual digital assets continue to be taxed at 30 per cent with 1 per cent TDS, but ownership rights are now clearer.
[The Business Standard]
