Madras High Court Recognises Cryptocurrency as “Property” Under Indian Law

The Madras High Court, in a landmark ruling on October 25, held that cryptocurrency qualified as property under Indian law, granting it legal protection and ownership rights.

Justice N Anand Venkatesh ruled that although digital currencies were intangible and not legal tender, they possessed essential characteristics of property, including transferability and beneficial ownership.

The case arose after Rhutikumari’s 3,532 XRP tokens on WazirX were frozen following a 2024 cyberattack.

The Court directed Zanmai Labs to furnish a bank guarantee worth ₹9.56 lakh and restrained Zanmai Labs from redistributing or reallocating the investor’s assets, while expressly relying on Section 2(47A) of the Income Tax Act, 1961, which classifies cryptocurrencies as “virtual digital assets.”

[Rhutikumari v Zanmai Labs Pvt Ltd]