A Landmark Judgment
The Indian cryptocurrency landscape has been a theatre of ambiguity for years, swinging between outright bans and hesitant acceptance. The recent landmark judgment by the Madras High Court, however, marks a pivotal moment in this saga. By recognizing cryptocurrency as 'property', the court has finally provided a legal anchor in these turbulent digital waters.
As reported by NDTV Profit, the ruling came from Justice N Anand Venkatesh while hearing a case involving an investor's frozen XRP holdings. His observation was clear and pragmatic: since cryptocurrency can be possessed, enjoyed, and held in trust, it qualifies as property, albeit not a tangible one or a currency. This distinction is crucial.
Clarity for Investors and Regulators
This decision brings much-needed relief to investors. As Edul Patel (edul@mudrex.com), CEO of Mudrex, pointed out, this clears the path for legal recourse in cases of fraud or mismanagement. For too long, investors were left in a lurch, with platforms often using jurisdictional ambiguity to evade accountability. Justice Venkatesh's ruling pierces that veil, establishing that Indian courts can protect domestic investors, regardless of where an exchange is based.
More importantly, this judgment nudges policymakers towards building a proper regulatory framework, a step that is long overdue.
A Reflection on Past Warnings
Watching this unfold, I can't help but feel a sense of validation. For years, I have been writing about the dangers of this very legal vacuum. In 2018, I expressed my bemusement when then-Finance Minister Arun Jaitley declared that cryptocurrencies were not legal tender, yet the government seemed unable to specify which law was being broken by those trading them (Bitcoin : Illegal in India). It was an untenable situation that I warned against.
The core idea I wanted to convey was this — I had pointed out the dangers of this ambiguity years ago. In posts like "Virtual Currency ? Time to get Real", I argued that without clear definitions and regulations, we were courting chaos. While the government was contemplating extreme measures like imprisonment for crypto use in 2019 (NEW LAW IN INDIA WOULD IMPRISON ANYONE WHO USES CRYPTOCURRENCY), my stance was always that the real problem was the lack of legal clarity, not the technology itself.
Seeing the judiciary now step in to provide that initial, foundational definition is exactly the kind of progress I had hoped for. The court has addressed the fundamental question: if it's not a currency, what is it? The answer—'property'—is a logical and powerful starting point. It grants digital assets a legal existence, which is the first step toward sensible regulation.
This ruling doesn't open the floodgates, but it builds the foundation for a dam. It shifts the conversation from "should we ban it?" to "how do we regulate it?" This is a far more constructive and necessary dialogue for a nation aspiring to lead in the digital age.
Regards,
Hemen Parekh
Of course, if you wish, you can debate this topic with my Virtual Avatar at : hemenparekh.ai
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