- Madras High Court declares XRP and other cryptocurrencies as property under Indian law.
- Court rejects WazirX’s Singapore claim, upholds Indian jurisdiction in crypto disputes.
- Ruling urges stricter crypto governance, fund segregation, and AML/KYC compliance.
In a legal development for India’s digital asset market, the Madras High Court has ruled that XRP and other cryptocurrencies qualify as property under Indian law. The decision, issued by Justice N. Anand Venkatesh, marks one of the clearest judicial interpretations of how virtual digital assets (VDAs) fit into India’s legal framework.
Justice Venkatesh stated that cryptocurrencies possess distinct characteristics, being movable, recognizable, and controllable only through private keys, making them a unique form of property. The ruling relied on Section 2(47A) of the Income Tax Act, 1961, which defines VDAs as taxable assets, establishing that crypto holdings represent quantifiable ownership rights rather than speculative transactions.
Court Upholds XRP Investor’s Rights and Rejects WazirX’s Jurisdiction Claim
The case originated from a dispute involving an investor and the cryptocurrency exchange WazirX, operated by Zanmai Labs Pvt Ltd. In January 2024, the investor purchased 3,532.30 XRP worth ₹1,98,516. Later that year, a cyberattack on WazirX resulted in an estimated $230 million loss of Ethereum and ERC-20 tokens, after which several user accounts were frozen.
The investor argued that her XRP holdings were distinct from the stolen Ethereum assets and held in trust by the exchange. She sought legal protection under Section 9 of the Arbitration and Conciliation Act, 1996, to prevent redistribution of her funds.
WazirX’s operator, Zanmai Labs, opposed the plea, citing that its Singapore-based parent company, Zettai Pte Ltd, was under a Singapore court order requiring all users to share the losses. However, Justice Venkatesh dismissed this argument, ruling that the hack affected only Ethereum-based assets, not XRP.
Court Asserts Indian Jurisdiction Over Digital Asset Disputes
The court held that Indian jurisdiction applies because the XRP transaction originated from a bank account within India. Justice Venkatesh clarified that Indian courts have the authority to protect assets located domestically, even if arbitration proceedings are based overseas.
He emphasized that Zanmai Labs, as a Financial Intelligence Unit (FIU)-registered entity, operates under Indian compliance standards, unlike its foreign affiliates. This distinction, he noted, enhances domestic accountability for cryptocurrency exchanges operating in India.
Justice Venkatesh pointed out the need for crypto platforms to strengthen internal governance frameworks, including client fund segregation and independent audits. He also called for stringent Know Your Customer (KYC) and a
