New Delhi: Noting government’s concerns that cryptocurrency advertisements were misleading, the Advertising Standards Council of India (ASCI) on Wednesday issued guidelines saying that they will put a disclaimer while promoting ‘highly risky’ and ‘unregulated’ cryptocurrencies from April 1.
In a tweet, the PTI reported, “Crypto products and NFTs are unregulated and can be very risky. There may be no regulatory recourse for any loss from such transactions.”
The ASCI wants this disclaimer to be displayed prominently on ads and promotions related to virtual digital assets such as cryptos or non-fungible tokens (NFTs). The guidelines will be applicable to all virtual digital asset-related ads released on or after April 1, 2022.
According to ASCI, all advertising for virtual digital assets and services needs to follow the following guidelines: All ads for VDA products and VDA exchanges, or featuring VDAs, must carry the disclaimer that crypto products and NFTs are unregulated and can be highly risky, and that there may be no regulatory recourse for any loss incurred from transactions involving them.
Such a disclaimer must be made in the following manner so that it is prominent and unmissable by an average consumer, said ASCI.
The announcement of the guidelines was done after consulting with industry stakeholders, government, and financial regulators. The central government is yet to come out with a law on such assets.
The Centre during the Union Budget has proposed 30 per cent tax on gains made from such transactions, which the crypto players have welcomed as a move to legitimise the industry.
However, the RBI has been firm in calling for a complete ban on such activities, saying they threaten financial stability and the challenge of exchange management, monitoring and regulating such assets.