As crypto starts to become mainstream throughout the world. The major issue of the rising number of misleading crypto ads has also started to skyrocket. Hence, various nations throughout the globe have decided to place some kind of regulations on crypto ads to curve down this ever-growing menace and now, in the same way, it has come to the notice of the Advertising Standards Council of India (ASCI) that it is high time for them to also set some detailed guidelines to manage the issue.
So, it seems after months of extensive consultations with major stakeholders of the Indian crypto community and the Government, the Advertising Standards Council of India (ASCI) has issued a detailed notification regarding the regulation of crypto ads in India. The new crypto ad regulations will come into force on or after 1st April 2022.
What are the new crypto ad regulations?
To help, you understand better, we have summarised the guidelines published by the ASCI below:
- All ads related or connected with any kind of Virtual Digital Asset (VDA) or product promotion must come with 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 above disclaimer must be:
Equal to at least 1/5th of the advertising space at the bottom of the advertisement in an easy-to-read font, against a plain background, and to the maximum font size afforded by the space.
- VDA ads should not provide information that contradicts with the standard warnings of other regulated institutions that serves customers.
- The words “securities”, “custodian”, “depositories” and “currency” must not be mentioned in VDA ads as this terms are specifically used for indicating only regulated products or services.
- VDA ads cannot in any way show any info regarding any of its product or services being a solution to financial problems to the society or even a soluiton to ones personal problem or solution to any other such economical drawbacks of the society.
- Minors or anyone resembling a minor cannot be featured in a VDA ad.
- VDA ads mustn’t contain any info regarding any investment promising any return of less than a 12 month period.
- The name of the institution or organisation behind the VDA ad should clearly be mentioned in the ad to promote clarity.
- VDA cannot be compared to any other regulated asset class or any other regulated investment market or regulated schemes.
- VDA ads must clearly mention or show the risks associated in investing in the VDA market and the risks shouldn’t be downpoured in anyway.
- VDA ads should mention accurate updated values, norms and news regarding the VDA market.
- Celebrities or prominent public figures featuring in VDA ads must also take it upon themselves to ensure that they promote genuine verified info regarding the VDA product or scheme and not end of promoting any false or misleading info.
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