What recognition of crypto as property will mean for taxation, inheritance, and insolvency laws in India

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Madras High Court declares cryptocurrency as property under Indian law

In a major ruling, the Madras High Court has said that cryptocurrency is legally considered “property” in India. This means digital currencies now get legal protection, just like other assets. The decision is an important step for crypto investors looking for clarity in India’s fast-changing digital asset market. It could also influence how future cases and regulations treat cryptocurrencies.

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Crypto can be owned, enjoyed, and held in Trust, says court

Justice N. Anand Venkatesh noted that cryptocurrency may not be a currency or a physical asset but still counts as property. He explained that it can be owned, traded, and transferred like other intangible assets. Examples include intellectual property, shares, and securities. This view strengthens the legal standing of crypto in India.

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Case involved frozen 3,532 XRP coins on WazirX after cyberattack

The case was brought by an investor whose 3,532.30 XRP tokens on WazirX were frozen after a cyberattack in 2024. The Madras High Court ruled that the tokens were her lawful property. It directed that no one should interfere with them until arbitration is completed. The order offers relief to the investor and signals stronger protection for crypto holders.

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Court cites global precedents from UK, US, and Singapore

The Madras High Court also cited global cases to support its view on cryptocurrency. It referred to rulings such as SEC vs Ripple in the US, AA vs Persons Unknown in the UK, and ByBit vs Ho Kai Xin in Singapore. In these cases, courts treated crypto as property or commodities. This shows that India’s judgment aligns with international legal thinking on digital assets.

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Crypto now recognised as virtual digital asset under Income Tax Act

Justice Venkatesh pointed out that under Section 2(47A) of the Income Tax Act, 1961, cryptocurrencies are already defined as virtual digital assets. This means they are recognised by law and subject to taxation in India. The judge said this classification further supports their status as property. It also strengthens the legal framework around digital assets in the country.

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India can build a crypto regime that balances innovation and protection

The court observed that India has a unique chance to build clear rules for the crypto industry. It said the country should promote innovation while protecting investors and maintaining financial stability. Striking this balance will be key to the future of fintech in India. The judgment urged policymakers to act thoughtfully as the sector grows.

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Crypto is now property’ in India: What that really means

The Madras High Court’s landmark ruling finally gives crypto a legal identity: property. This strengthens investor rights across taxation, inheritance, and insolvency. From stronger ownership claims to better legal protection during exchange disputes, digital assets now enjoy the same legal respect as other intangible assets.

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Tax shock or tax clarity? What changes after the ruling**

Crypto’s property status reinforces India’s existing VDA tax regime. There are no new taxes — but enforcement just got sharper. Nothing is in black and white, but it could mean:
• 30% flat tax on gains
• 1% TDS on transactions
• No loss set-off across assets
• Gifts taxable, unless from exempt relatives
• Mandatory reporting under Schedule VDA

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Crypto in your will? Yes, it now counts as inheritable property

Cryptocurrency is now considered part of a person’s estate under succession laws. This means heirs can inherit digital assets just like any other movable property. While inheritance itself is tax-free, any future gains will be taxed at 30 percent. The bigger hurdle is making sure heirs can access private keys and exchange accounts.

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Exchange goes bust? Your crypto can’t be touched*

The court ruled that exchanges hold customer assets in trust, not as their own property. This is big:
• Investor assets must be segregated during insolvency
• Exchanges owe users a fiduciary duty
• Investors can seek injunctions and recovery during freezes or hacks
India just moved a step closer to FTX-proof investor protection.