Chennai | November 2025
In a landmark development for India’s digital asset ecosystem, the Madras High Court has recognised cryptocurrency as “property”, granting investors enforceable ownership rights and placing fiduciary obligations on exchanges such as WazirX.
The interim order, while case-specific, is expected to set a wider precedent by shifting the legal perception of crypto assets from speculative instruments to intangible property capable of ownership and trust.
“The High Court held categorically that cryptocurrency qualifies as property capable of being enjoyed, possessed, and held in trust,” said Ashutosh K. Srivastava, Partner at SKV Law Offices. “This means crypto investors can now seek remedies such as injunctions and protection against misappropriation.”
The ruling, binding on subordinate courts in Tamil Nadu, aligns with the Supreme Court’s 2020 judgment lifting the RBI’s banking ban on crypto and reinforces the definition of Virtual Digital Assets (VDAs) under the Income Tax Act.
Legal experts say the decision transforms crypto investors into beneficiaries with fiduciary rights owed by exchanges. “They are no longer unsecured creditors but true owners of their digital assets,” said B. Shravanth Shanker, Advocate-on-Record, Supreme Court of India.
In the WazirX case, the court restrained the platform from redistributing unaffected XRP tokens to offset unrelated Ethereum losses—signalling that exchanges cannot mix or reallocate user holdings.
While the order does not alter the existing tax regime—profits remain taxed at 30% and 1% TDS applies under Sections 115BBH and 194S—it strengthens the government’s legitimacy in taxing crypto as property.
Experts also expect heightened compliance under the Prevention of Money Laundering Act (PMLA), which designates exchanges as “reporting entities” subject to strict KYC and audit norms.
However, challenges persist in cross-border recovery when exchanges or assets are based overseas. “Private keys can be moved instantly; enforcement depends on cooperation with foreign entities,” noted Alay Razvi, Managing Partner, Accord Juris.
Despite these hurdles, the ruling is seen as a turning point for investor protection and a step toward a structured crypto regulatory framework in India.