The Advertising Standards Council of India has recently issued guidelines related to the advertising crypto assets in the country. The decision arrived after the Council noticed that several ads don’t disclose the risks involved with cryptocurrency investing.
Consumer’s Interest Must Remain Protected
The latest ASCI press release noted that the agency discussed the guidelines with multiple stakeholders, including the government and the virtual asset industry, to generate the guidelines.
The essential idea is to protect the consumers who might not be completely aware of the risks related to crypto investing. In addition, ASCI wants to ensure that ads do not mislead or exploit the consumers.
According to the guidelines, all digital asset products or exchanges must include a disclaimer that says that crypto products and NFTs are unregulated and highly risky. Additionally, the exchanges and products must note that there may not be any regulatory recourse for losses caused by crypto transactions.
ASCI also imposed a few other advertising standards. For example, crypto-related ads may no longer use the following words: “currency,” “securities,” “custodian,” and “depositories.”
What’s more, crypto-related ads may no longer compare digital assets with any other asset class that’s regulated in the country. Ads may not promise any profits.
Many other countries are also dealing with crypto-related ads. For example, some require that influencers clearly note whether they’ve been compensated for promoting a specific cryptocurrency, while others are working on detailed plans to regulate crypto advertising.