BENGALURU: For a few months now, advertisements on crypto exchanges have flooded TV screens and keeping investors’ interest in mind, the Advertising Standards Council of India (ASCI), the advertising industry's self-governing body, has said that all ads for virtual digital assets (VDA) should put disclaimers.
"Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions."
ASCI has said that such a disclaimer must be made and the words 'currency', 'securities', 'custodian' and 'depositories' should be used in advertisements of VDA products or services as consumers associate these terms with regulated products.
Also, since VDA is a risky category, celebrities or prominent personalities who appear in such ads must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers, ASCI said in its guidelines.
The guidelines will be applicable to all advertisements released or published on or after 1, April 2022. ASCI also said that these guidelines do not amount to any legal recognition or endorsement of the industry or the sector, as that is a matter of government policy.
Crypto investing platform Mudrex co-founder and CEO Edul Patel said that these are definitely a progressive step towards protecting the consumer interest. "It can also get the NFT industry under one roof. The ASCI has consulted the industry before forming the guidelines which is really a good move. This can also encourage crypto enthusiasts... It is a great boost for the crypto spectrum," Patel said.
CoinDCX, which is a member of ASCI, said the new guidelines add in more clarity. The exchange said it has been following some internal guardrails to be transparent.
Due diligence must before endorsements
Since VDA is a risky category, celebrities or prominent personalities who appear in such ads must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers.