The Advertising Standards Council of India recently released an extensive guideline for cryptocurrency and crypto business adverts, including exchanges and NFTs.
The ASCI noted that the guidelines will be enforced by April 1, 2022, and that advertisers have to make sure that their previous crypto ads are not aired in the public domain without a newly scripted disclaimer.
The regulatory body mandated in the guideline that cryptocurrency ads must contain that these “unregulated” products can be “highly risky” as regulatory recourse is impossible once an investor realizes any loss. The ASCI asked cryptocurrency businesses running ads to have this scripted disclaimer: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions” prominently displayed on an ad they display on public media.
Guideline Should Not be Conflated with Approval: Advertising Standards Council of India
The ASCI, a self-governed regulatory body of the Indian advertising industry, clarified that the guidelines should not be mistaken as “legal recognition or endorsement of the industry or the sector.”
The watchdog also noted that adverts of digital assets “has been very aggressive over the past few months,” despite efforts by the Indian government to develop a regulatory framework for the industry. The body noted that many crypto ads do not “adequately” highlight the risks associated with investing in them, adding that there were no mechanisms in place to make sure these companies do not “mislead or exploit” the consumers. The ASCI noted:
“ASCI has extensively consulted with different stakeholders including government and the virtual digital asset industry – to frame guidelines for virtual digital asset advertising.”
Meanwhile, the regulatory watchdog mandated that crypto businesses desist from comparing virtual digital assets with other regulated assets.
Secretary-General of ASCI, Manisha Kapoor, noted:
“Globally, this is an emerging technology, and products in the virtual digital asset industry have seen significant volatility. We believe with these guidelines advertisements would be fairer and more transparent.”
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