How Does Cryptocurrency Inherit? Legal Classification and Practical ChallengesOriginal Authors: Xu Qian and Li Xinyi
Introduction
As digital assets become increasingly widespread, the inheritance of virtual currencies is gradually emerging as an unavoidable legal and practical issue. When life comes to an end, what happens to the wealth stored on the blockchain? Are these assets protected by law, and what challenges might arise during the inheritance process?
This article will explore the legal nature and real-world challenges of virtual currency inheritance from a lawyer's perspective, combining legal provisions with typical cases.
A Milestone Case from the Madras High Court
In October 2025, the Madras High Court in India issued a landmark ruling, recognizing that cryptocurrencies meet the legal definition of "property" and can be owned, transferred, and held in trust. The case originated when a investor’s 3,532 XRP tokens were frozen on the WazirX exchange, and the court ultimately affirmed that these assets should be protected as property. This ruling marked a significant step in clarifying the legal status of digital assets.
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