Indian Court Declares XRP as Property, Influencing Crypto Regulations
- The Madras High Court ruled that cryptocurrency qualifies as property under Indian law.
- Justice N Anand Venkatesh issued an interim injunction preventing WazirX from reallocating 3,532.30 XRP belonging to a customer.
- The ruling was based on Section 2(47A) of the Income Tax Act, recognizing crypto as a digital asset capable of being held in trust.
- WazirX argued jurisdiction should lie with Singapore’s high court due to its restructuring scheme, which the court rejected.
- This decision aligns India with other jurisdictions treating crypto holdings as distinct property rights during insolvency proceedings.
The ruling underscores the legal recognition of cryptocurrency as property, potentially impacting how exchanges manage user assets amid financial distress and insolvency issues globally.
By affirming that crypto purchases create enforceable property interests, the court’s decision may limit platforms’ ability to redistribute user holdings during crises, marking a significant shift in regulatory frameworks.(Source)
