Madras High Court Rules XRP as Property Under Indian Law
The Madras High Court has affirmed that XRP qualifies as property under Indian law, marking a pivotal moment for XRP property rights in India. The decision, prompted by a WazirX user’s petition over 3,532.30 frozen XRP after a July 2024 hack, invoked Section 2(47A) of the Income Tax Act to classify virtual digital assets as intangible yet transferable property. The interim order blocks Zanmai Labs from reallocating tokens and mandates an $11,500 bank guarantee. This legal clarity forces exchanges to guarantee user assets, improve custody protocols, and comply with domestic jurisdiction. By aligning India with the US and UK, the ruling strengthens investor protection, may reduce litigation, and boosts confidence in XRP property recognition, as tokens traded near $2.30 post-ruling. Traders should monitor regulatory developments and adopt best custody and risk management practices.
Bullish
By granting legal recognition to XRP as property under Indian law, the ruling reduces regulatory uncertainty and strengthens investor protections. In the short term, this clarity could trigger increased buying interest and higher trading volumes, as XRP traded near $2.30 post-ruling reflecting positive sentiment. Long term, mandatory custody protocols and potential formal regulations may bolster institutional participation and market stability, driving sustained demand for XRP property in India’s expanding crypto market.