The Madras High Court's Landmark Decision on Cryptocurrency Ownership
- Indian court declares XRP as property in WazirX case.
- Impacts exchange holdings and user rights in India.
- Sets precedent for crypto property rights under Indian law.
The Madras High Court ruled XRP on WazirX as property, marking a significant decision for cryptocurrency ownership in India.
This landmark ruling impacts crypto asset rights, setting a legal precedent, potentially influencing future exchange-user relationships across Indian crypto platforms.
The court’s decision in favor of cryptocurrency as recognized property reshapes legal perspectives and operational policies for exchanges in India, signaling a shift in how digital assets are viewed under the law.
The Madras High Court’s Decision
The Madras High Court ruled that XRP held on WazirX is the user’s property, not the exchange’s. This case involved Rhutikumari, a user whose XRP was frozen post-hack, challenging WazirX’s asset restructuring.
The court ordered Zanmai Labs, WazirX’s operator, to provide a bank guarantee equivalent to 9.56 lakh INR for Rhutikumari’s frozen XRP. Justice N. Anand Venkatesh emphasized cryptocurrency as legally recognized property. As Justice N. Anand Venkatesh stated,
Cryptocurrency is a property… capable of being enjoyed and possessed, and capable of being held in trust.
Immediate Legal Implications
Immediate effects include a shift in legal perspectives on cryptocurrency ownership in India. The decision affects user rights and the operation of cryptocurrency exchanges across the country.
The ruling emphasizes financial implications as exchanges may need to reassess asset ownership policies. Exchange-users relationships may undergo changes as the judicial system recognizes cryptocurrencies like XRP as property.
Community and Future Impact
Community sentiment supports the ruling highlighting the need for clearer crypto asset protection laws. The decision may influence future legal disputes involving exchanges.
Insights suggest regulatory frameworks in India might evolve, prompting exchanges to adopt transparent operational guidelines. Historical cases show other jurisdictions treating crypto as property, but this is an Indian legal first.
