You all have been seeing a lot of crypto ads on your TV, Mobile, PC etc. these days. The trends for crypto ads have been magnificent in India.
Following a surge of crypto ads in recent months, the Advertising Standards Council of India (ASCI), the country’s self-regulatory authority for the advertising sector, has set guidelines for crypto ads. These guidelines, which go into effect on April 1, compel crypto firms to carry the following disclaimer in all of their advertisements: “Cryptocurrencies and non-fiat currencies are unregulated and can be extremely dangerous. There could be no regulatory remedy for any losses incurred as a result of these transactions.”
According to the ASCI, the disclaimer should be “prominent and unmistakable” to the average consumer. In a print ad, for example, the disclaimer should take up at least 1/5th of the ad space at the bottom and be written in a legible typeface on a simple background. The disclaimer should be put on a plain background at the end of a video commercial. The disclaimer in print must be accompanied by a voice-over, which should be delivered at a normal speaking pace and not rushed. The keywords “currency,” “securities,” “custodian,” and “deposits” are prohibited in crypto advertisements, according to the standards, because consumers link these terms with regulated products. Crypto “returns for periods of shorter than 12 months shall not be included” in marketing, according to the standards.
The recommendations were released two months after India’s Prime Minister Narendra Modi convened a crypto summit, in which it was agreed to “avoid attempts to mislead the youth through over-promising and non-transparent advertising.”
The ASCI rule, however, does not imply that cryptocurrency is now legal in India. The country has yet to state its regulatory position. A crypto bill is being drafted, which would explain the country’s stance on the emerging industry.