The Madras High Court recognised Cryptocurrency as a property under Indian law. People considered it a landmark judgement because it will make the process smooth for investors of this digital asset to seek legal recourse in times of unfortunate events.
Justice Venkatesh was hearing a case filed by an investor whose XRP holdings on the WazirX platform were frozen after a 2024 cyberattack, Bar and Bench reported. The investor had a portfolio of 3,532.30 XRP on WazirX platform.
A crucial subject for this case was to determine whether the investor can be considered as proprietor of XRP holdings.
What's The Significance Of This Recognition?
Easy To Seek Legal Recourses: Madras High Court's landmark judgement cleared the uncertainty for investors who require legal recourse in case of fraud, misuses. "Before this judgment, investors had limited recourse when platforms froze accounts or misappropriated funds, with many cases being dismissed on grounds of jurisdiction or regulatory ambiguity," said Edul Patel, CEO, Mudrex.
Step Towards Proper Regulatory Framework: Policy makers and regulators may now mull to build a proper framework to regulate crypto currency as Justice Venkatesh emphasised that the current situation demands for it.
Ends Jurisdictional Ambiguity: According to Patel, another key takeaway from this landmark judgement is that the Madras High Court has provided jurisdictional clarity. Indian courts now have the authority to protect domestic investors even if the exchanges are based out of another country. From now on, offshore incorporation can no longer serve as a shield against accountability.
On Saturday, Justice N Anand Venkatesh said that Cryptocurrency is a property because it can be enjoyed and possessed in a beneficial form and held in trust. However, Crypto is not a tangible property n or a currency, he clarified while making the observation.
The Madras High Court also relied on international precedents including New Zealand High Court's decision in Ruscoe v. Cryptopia Ltd (in liquidation) and the UK High Court ruling in AA v. Persons Unknown. Both cases concluded that Cryptocurrency is a form of property that can be held on trust, Bar and Bench reported.
Justice Venkatesh said, while examining how cryptocurrency fits within established notions of legal property, courts have taken a central stage where the future value of the digital asset is debated, Global Legal Insights reported.
He highlighted that there is an opportunity for India in the current to consider forming a regulatory regime that will encourage innovation and protect consumers and maintain financial stability.
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