Big Victory for XRP In India. Here’s the Latest

India’s Madras High Court has ruled to recognize XRP as a property, granting it legal protection under Indian criminal law. This landmark decision emerged from a petition filed by Rhutikumari, a WazirX user whose account containing 3,532.30 XRP, valued at approximately $9,400, was frozen. The freeze followed the platform's response to a July 2024 hack that resulted in losses exceeding $235 million.

The exchange had proposed a "socialization of losses" plan, which aimed to spread the financial damage across all users. This proposal prompted Rhutikumari to challenge the plan, viewing it as an infringement of her ownership rights. WazirX maintained that the issue fell under a Singapore-approved restructuring plan. However, the Indian court asserted its jurisdiction, citing that the petitioner utilized an Indian bank account and accessed the platform domestically.

Court Affirms Digital Assets as Property Under Indian Law

Justice N. Anand Venkatesh delivered the ruling, stating that digital assets, such as XRP, are property capable of being possessed and held in trust. This decision officially recognizes their status under Indian law. The court characterized cryptocurrencies as intangible assets that can be owned and transferred, aligning them with property classifications found in Section 2(47A) of the Income Tax Act.

In its interim order, the court prohibited Zanmai Labs, the operator of WazirX, from reallocating the petitioner’s XRP. Furthermore, the company was instructed to provide a bank guarantee of approximately $11,500 pending the resolution of the case.

This ruling effectively grants crypto holders in India legal recognition of their ownership rights. It also provides protection against the unauthorized reallocation of their digital assets, similar to how Bitcoin is recognized in China.

Legal Clarity for Indian Crypto Investors

The decision offers long-awaited clarity for Indian investors by recognizing XRP and similar assets as personal property, rather than unsecured exchange claims. This development comes as banks in India are already conducting tests with XRP.

Reports indicate that this ruling may compel exchanges to re-evaluate their custody policies and restructuring plans. The decision also serves to strengthen investor confidence by ensuring greater protection for token holders during disputes, insolvencies, or other exchange-related issues.

India Aligns with Global Jurisdictions

With this ruling, India now joins other jurisdictions, including the United States, the United Kingdom, and Singapore, where courts and regulators have provided clarity on crypto ownership. The recognition of XRP as property in India is anticipated to positively influence the asset’s perception and demand within the country.

At the time of the ruling, XRP was trading near $2.3, following some notable declines in recent weeks. The legal certainty surrounding ownership rights is expected to bolster domestic investor confidence and reinforce India's growing position within the global digital asset landscape.