The legal status of cryptocurrency in India just got clearer. The Madras High Court has ruled that cryptocurrencies constitute property under Indian law. Not legal tender, mind you—just property. Big difference. The ruling confirms crypto can be owned, enjoyed, and held in trust, giving hodlers some much-needed legal recognition at last.
This landmark decision didn’t come out of nowhere. The court relied on both Indian principles and foreign precedents that establish cryptocurrency as “definable, identifiable, transferable, and capable of exclusive control.” Pretty important qualities if you’re claiming something is property.
The case involved Section 9 of the Arbitration and Conciliation Act and concerned crypto assets held on WazirX. The court specifically rejected WazirX’s claim that the cyberattack affected all users, including the applicant who had purchased XRP coins. Using cold wallet storage could have prevented such security concerns.
Let’s be real—the government and RBI still won’t call crypto “legal currency.” Never have. But there’s no formal ban on owning or trading the stuff. Remember that 2018 RBI circular restricting banks from dealing with crypto? The Supreme Court tossed it out in 2020. Boom. Gone.
The tax folks don’t care what you call it. They’ve already classified crypto as “virtual digital assets” under Section 2(47A) of the Income Tax Act. And they want their cut—30% on gains plus 1% TDS on transfers. No deductions except acquisition costs. Forget to report it and you’re in trouble.
The court didn’t just make this up. They cited precedents like Ahmed GH Ariff v. CWT, which defines property as “every species of valuable right and interest.” They even looked at cases from New Zealand and the UK to back their position.
So what does this mean? Your crypto is legally property—not currency. You can’t use it to settle debts or buy groceries as legal tender. But if someone messes with your digital assets, you’ve got enforceable rights. Indian law recognizes your right to possession and protection.
Trading and investing? Fine. Payment substitute? Nope. The lines are drawn. For now.
