XRP gets legal recognition as 'property'

Core Viewpoint - The recognition of cryptocurrencies and tokens as "property" by various countries enhances ownership rights and integrates these digital assets into existing tax frameworks [1][2][3]. Regulatory Developments - The United States Internal Revenue Service (IRS) classifies virtual currencies like Bitcoin and XRP as property for federal tax purposes, subjecting them to capital gains tax upon sale, exchange, or expenditure [2]. - The United Kingdom's courts have acknowledged cryptocurrencies as personal property, enabling legal remedies such as injunctions and asset recovery in cases of fraud or theft [2]. - Singapore's High Court has confirmed that digital assets can be held in trust, providing them with civil law protection [3]. - India's Madras High Court has made a landmark ruling recognizing cryptocurrencies like XRP as property capable of being possessed and held in trust, establishing a new legal precedent in the country [4]. Case Study - The ruling in India was influenced by a case involving a WazirX user whose 3,532.30 XRP, valued at approximately $9,400, was frozen following a hack of the exchange in July 2024 [5]. - WazirX, one of India's largest cryptocurrency exchanges, experienced a significant hack that resulted in the loss of around $235 million in assets, leading to the implementation of a "socialization of losses" plan to distribute the financial impact across all user accounts [6].