February 23, 2022
By Anjali Kochhar
Weeks after the Indian government slapped the cryptocurrency industry with 30% taxation, the country’s advertising watchdog has released guidelines for commercials related to cryptocurrency and digital assets.
The Advertising Standards Council of India (ASCI) said in an official statement Wednesday that these guidelines would be applicable from April 1.
The 12-point guideline requires each commercial to showcase the following disclaimer:
“Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
The regulations further note that consumers associate the phrases “currency,” “securities,” “custodian,” and “depositories” with regulated products, and hence they may not be used in commercials of “virtual digital assets” products or services.
According to the statement, information on the cost or profitability of VDA products be clear, precise, sufficient, and up to date.
Many Indian crypto exchanges promote trades on their platforms to be “zero cost”. The new guidelines would require them to disclose all costs and not mislead customers in any way.ndia
As per reports, the festive season and cricket matches had driven the growth of crypto commercials in the country despite a strong message from the central government against deceptive ads.
On the release of the guidelines, Shivam Thakral, CEO of Buyucoin, a homegrown cryptocurrency exchange, said, “We are glad that finally, we have clear advertising guidelines from ASCI for crypto advertising in India. If we look at the existing crypto advertisements, they are already carrying risk-related disclaimers for the investors as mentioned in the latest ASCI guidelines.”
He further added that the advertising guidelines should be common for asset-based investments with a clear focus on communicating the associated risks to investors.
“The clarity on advertisement guidelines will encourage crypto service providers to create annual media plans which will boost the revenues for the advertising industry. The advertising guidelines are based on our current understanding of the crypto ecosystem and are expected to evolve as the industry enters a more mature phase,” Thakral told Blockchain Asset Review.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.