What happened?
The Madras High Court ruled that cryptocurrencies are legally property in India. It barred WazirX from using a customer’s 3,532 XRP to cover part of a $234 million hack loss. The judge said assets held by exchanges belong to clients and rejected WazirX’s plan to spread losses across users.
Who does this affect?
Indian crypto users who keep funds on exchanges now have clearer legal protection over their assets. Crypto exchanges, especially WazirX, are directly affected because they can’t unilaterally redistribute user funds to cover hacks. Creditors and offshore restructuring plans are also constrained because domestic consumer and property laws take precedence.
Why does this matter?
Giving crypto property status should boost user confidence and could encourage more onshore trading and deposits. Exchanges will likely need stronger custody practices, insurance, or capital buffers, which could raise operating costs and change fee structures. In the short term this could cause higher withdrawals and volatility, but clearer rules may attract institutional investors and help stabilize markets over time.