XRP Receives Legal Recognition as 'Property

Can you call your digital assets "property"?

In many countries, cryptocurrencies and tokens are shrouded in regulatory ambiguity as governments grapple with the functioning of these assets. However, some countries have taken decisive steps towards legal clarity by recognizing crypto as property.

Classifying digital assets as "property" strengthens ownership rights and makes them subject to existing tax structures.

In the United States, the Internal Revenue Service (IRS) considers virtual currencies like Bitcoin (BTC) and XRP to be property for federal tax purposes, subjecting them to capital gains tax when sold, exchanged, or spent.

Courts in the United Kingdom have also recognized crypto as personal property, allowing for remedies such as injunctions, tracing, and asset recovery in cases of fraud or theft.

Singapore's High Court has also confirmed that digital assets are "property that can be held in trust," granting them protection under civil law.

Now, India has also joined these categories, setting a new precedent in the country's legal and regulatory landscape.

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Court qualifies crypto ownership

In a landmark decision, the Madras High Court ruled on October 25 that cryptocurrencies like XRP are "property that can be held and held in trust," formally recognizing them as a distinct form of property under Indian law.

XRP is a cryptocurrency primarily used for fast and low-cost cross-border payments. It runs on the XRP Ledger (XRPL) – an open-source, decentralized blockchain network developed by San Francisco-based fintech company Ripple Labs Inc.

XRP is a cryptocurrency primarily used for fast and low-cost cross-border payments. It runs on the XRP Ledger (XRPL) – an open-source, decentralized blockchain network developed by San Francisco-based fintech company Ripple Labs Inc.

The decision came on a petition filed by WazirX user Rutikumari, whose 3,532.30 XRP, worth approximately $9,400, was frozen after the exchange was hacked in July 2024.

WazirX is one of India's largest cryptocurrency exchanges. Founded in 2018 by Nischal Shetty, Sameer Mhatre, and Siddharth Menon, the platform allows users to convert Indian Rupees (INR) into crypto.

In July 2024, a hack on the exchange wiped out approximately $235 million in assets. The crypto exchange launched a "loss socialization" scheme to spread the financial losses across all user accounts.