Cryptocurrency As Property: Business And Legal Implications Of The Madras High Court Ruling

• Published date: 14 November 2025
• Law Firm: Legitpro Law
• Author: Ms Helen Stanis Lepcha

1. Introduction

Cryptocurrencies and digital assets have moved beyond speculation to become tangible instruments of business transformation. They enable faster cross-border settlements, enhance liquidity management, and offer innovative tools for financing and asset tokenisation. However, until recently, ambiguity in India's legal framework left corporations uncertain about how to account for, protect, and report such assets.

The Madras High Court's decision in Rhutikumari vs Zanmai Labs Pvt. Ltd. marks a pivotal shift. The court recognised cryptocurrencies as property under Indian law, establishing that users hold identifiable ownership rights and that exchanges or intermediaries cannot redistribute or repurpose these holdings without consent. Crucially, it affirmed that Indian courts retain jurisdiction under Section 9 of the Arbitration and Conciliation Act, 1996, even where arbitration is seated overseas, ensuring domestic enforceability of digital asset rights.

This recognition positions digital assets as a legitimate component of corporate balance sheets, investment portfolios, and treasury strategies. The ruling transforms cryptocurrencies from speculative exposure to a regulated, protectable, and governable asset class.

2. How is Digital Asset modifying the paradigm for corporations?

Digital assets, encompassing cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and tokenized securities, are revolutionizing the domain of corporate finance and business operations.

1. Treasury Management: Corporations are increasingly integrating digital assets into their treasury management strategies to diversify sources of liquidity, optimize capital efficiency, and act as potential safeguards against inflation within their financial portfolios.
2. Cross-Border Transactions: The adoption of cryptocurrency-based settlement systems enables expedited and more economical cross-border monetary transactions, thereby markedly diminishing remittance expenses and processing durations particularly for enterprises engaged in trade-centric sectors such as manufacturing, information technology, and logistics.
3. Tokenised Fundraising: The implementation of blockchain technology facilitates groundbreaking fundraising methodologies by permitting fractional ownership of assets, the tokenisation of debt instruments, and decentralised financing frameworks, all underpinned by verifiable and transparent audit trails that bolster investor confidence and regulatory scrutiny.
4. Customer Engagement: The deployment of loyalty and reward tokens significantly enhances customer retention and fortifies brand affiliation by cultivating sustained engagement within a company's ecosystem, thus promoting repeated interactions and the creation of long-term value.
5. Supply Chain Visibility: The utilisation of blockchain-based tokens elevates end-to-end transparency throughout the supply chain by allowing for precise traceability of goods streamlined...