Cryptocurrency: Amidst the long-running debate over cryptocurrency in India, the Madras High Court has delivered a landmark ruling. The court clearly stated that cryptocurrency can be recognized as “property” under Indian law, and any individual can hold it or preserve it in a trust. This decision has not only instilled new hope in investors but also provided a clear direction for the future of digital currency in India.

Cryptocurrency will now be considered legal property

Madras High Court Justice N. Anand Venkatesh stated in his ruling that cryptocurrency is considered a virtual digital asset under Indian law. It will not be considered a form of speculation or gambling. The court also clarified that cryptocurrency can be used as an investment, and individuals can buy, sell, or hold it for profit. This ruling falls under Section 2(47A) of the Income Tax Act, which governs taxation of virtual digital assets.

Rutikumari vs. Janmai Labs: What Was the Case?

The decision came on a petition filed by an investor named Rutikumari against Janmai Labs Private Limited and its directors. She alleged that the company was interfering with and attempting to redistribute her 3,532.30 XRP coins held on the WazirX platform. The court issued an interim order in favor of the petitioner, restraining Janmai Labs from any interference, redistribution, or division of this asset.

WazirX Argument and Court Response

Janmai Labs and WazirX argued that the coins held in the crypto wallets were not owned by the platform. They stated that the company was affected by the hacking and that withdrawals for all users were temporarily suspended under a restructuring plan approved by the Singapore High Court. According to that plan, users will be compensated in three phases under the supervision of the Singapore court.

A Big Sign for Indian Investors

This decision is a positive sign for millions of investors in India who have grappled with the question of whether cryptocurrencies are legal for years. Now, the court has clarified that cryptocurrencies are recognized digital assets that anyone can hold or use as an investment.

New Direction for the Crypto Industry

This decision will give a new direction to the Indian crypto industry. Experts believe that this decision will pave the way for further clarification of crypto regulations by the government, thereby increasing both investor protection and transparency in the future.

This decision by the Madras High Court is not only a legal victory but also a major step towards digital financial freedom. In a country like India, where technology and digital innovation are rapidly growing, this decision could pave the way for the inclusion of cryptocurrencies in the mainstream economy in the future.

Disclaimer: The information provided in this article is for general information purposes only. It is not intended to provide any kind of investment advice. Investing in cryptocurrency can be risky, so be sure to do your research before investing.