According to the Advertising Standards Council of India (ASCI), specific rules are to be applied to the advertising of all virtual digital assets, including cryptocurrency and NFTs, from April 1, 2022. The main objective of these rules is to protect customers from misleading advertisements. .
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After detailed negotiation with all stakeholders, including the government, ASCI drafted the guidelines.
Indian Advertising Standards Council recommended that all crypto asset advertisements must clearly state: âCrypto products and NFTs are unregulated and can be extremely risky.â There is no regulatory remedy liable for damages resulting from such exchangesâ.
ASCI also recommends prohibiting VDAs (Virtual Digital Assets) from using custodians, currencies, custodians and collateral on advertising material for products or any service, as customers identify these terms with regulated products. .
Companies will be required not to disclose past performance information in an intermediate or influential way. Additionally, ASCI advises businesses not to include revenue less than 12 months in their marketing materials.
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Under the new ASCI rules, the person who is a minor or looks like a minor is not allowed to directly engage in product trading and may not even talk about advertising VDA products. Additionally, other statements that promise or guarantee increased profit in the future will not be included in the advertisement.
ASCI provided a framework for celebrities
ASCI also provides a clear framework for celebrities and key figures in VDA ads. ASCI guides them to ensure that they carefully mention disclosures made in advertisements. Any misrepresentation can be dangerous and mislead the customer as digital currency is highly volatile and risky.
CoinDCX and CoinSwitch attracted Bollywood stars for their advertising campaigns during the ICC World Cup. This is an example of how they can use cryptocurrency in daily life.
ASCI President Subhash Kamath said “
We had several rounds of discussions with government, financial sector regulators and industry stakeholders before developing these guidelines. Advertising virtual digital assets and services requires specific advice, as it is a new and emerging way of investing. It is therefore necessary to make consumers aware of the risks and to ask them to proceed with caution.
Although the Advertising Standards Council of India guidelines are not legally binding, they have a self-regulatory body with high compliance rates. Also, if anyone breaks these standards, they will most likely post their name and details of what happened so that others do the same if necessary.
The practice is standard in any case where there has been non-compliance before, but the ASCI 95% rate shows how truly committed they are to protecting consumer interests while advertising .
Featured image from Pixabay and chart from TradingView.com