Digital Assets as Property: India's Legal Gaps and Fixes

The rapid growth of technology and the digital economy has led to the emergence of cryptocurrencies, NFTs, virtual gaming items, and other forms of digital assets. Indian jurisprudence, however, has struggled to keep pace with these developments, resulting in a significant legal and conceptual gap. Traditionally, Indian law recognises property as either tangible or intangible, with intellectual property falling within the latter category. Digital assets, although intangible in nature, possess characteristics that distinguish them from conventional forms of intangible property, thereby requiring a distinct legal approach. At present, Indian law does not clearly recognise digital assets as property, creating uncertainty regarding the rights and protections available to asset holders. While the Finance Act, 2022 introduced taxation provisions relating to Virtual Digital Assets, it did not address issues concerning ownership, transferability, or civil rights associated with such assets. In the absence of a comprehensive statutory framework, courts are increasingly required to resolve disputes involving digital assets without adequate legislative guidance. This paper examines the legal status of digital assets in India through an analysis of existing laws, judicial developments, and emerging trends. It further suggests reforms aimed at adapting Indian jurisprudence to the changing realities of the digital economy.