Advertising Standards Council of India issues guidelines for cryptocurrency ads

The Advertising Standards Council of India (ASCI) has issued guidelines on the advertisement framework for digital assets and cryptocurrency firms such as non-fungible tokens (NFTs) platforms and cryptocurrency exchanges.

The ASCI has said that the comprehensive set of guidelines will be implemented from April 1, 2022. Once they are implemented, advertisers need to ensure that previous ads will feature a new disclaimer.

ASCI places a disclaimer on ads

The local regulatory body has said that cryptocurrency ads will carry a disclaimer saying that investing in digital assets is “highly risky.” It further stressed that there was “no regulatory recourse” if any losses were made.

The disclaimer needs to be attached before any cryptocurrency ad can be shared with the public. the regulatory body has further said that these guidelines should not be taken as a “legal recognition or endorsement of the industry or the sector.”

The regulatory body said that the process of developing these guidelines was inclusive.

ASCI has extensively consulted with different stakeholders including government and the virtual digital asset industry – to frame guidelines for virtual digital asset advertising.

The ASCI noted that most of the advertisements did not highlight the risks associated with cryptocurrency products. Moreover, there was no framework in place that ensured the ads did not “mislead or exploit.”

The secretary-general of the ASCI, Manisha Kapoor, commented on this development saying, “Globally, this is an emerging technology, and products in the virtual digital asset industry have seen signifi9cant volatility. We believe with these guidelines, advertisements would be fairer and more transparent.”

Crypto regulations in India

In its Union Budget 2022, India proposed a 1% tax deduction on source for all cryptocurrency transactions. Another 30% tax will be charged on all profits derived from these transactions.

The Indian central bank does not seem to be relaxing its harsh stance against the sector, with a top official from the Reserve Bank of India saying that cryptocurrencies were like Ponzi schemes, and they needed to be banned because they did not have any intrinsic value. The central bank is also planning to launch a central bank digital currency (CBDC) during the next fiscal year.

The post Advertising Standards Council of India issues guidelines for cryptocurrency ads appeared first on Invezz.