In the first five months of 2022, over 400 cryptocurrency-related advertisements were found to violate advertising and promotion guidelines of virtual digital assets (VDAs) as well as guidelines for influencer advertising, according to the Advertising Standards Council of India (ASCI). For those unaware, cryptocurrencies and all related offerings are clubbed under VDAs in India. ASCI in February issued guidelines on crypto ads and promotions, which went into effect on April 1. It mandated all VDA ads to carry a disclaimer that points out crypto products and NFTs “are unregulated and highly risky.”
As per a report by The Economic Times, ASCI received 453 complaints between January and May this year. Out of them, 419 required modifications, and most complaints concerned influencers.
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ASCI CEO Manisha Kapoor said, “Some influencers talk so confidently about crypto without fully understanding it. It does create an impression that it is safe, it's fine and a cool thing.” She added, “Some of these influencer ads don't even talk about the risks, which is not right and against our guidelines. Technically, they are ads with no disclosures or disclaimers, which is mandatory. This is in violation of our guidelines. We will escalate it to the government in case of no compliance.”
In May, the Securities and Exchange Board of India (SEBI) suggested that celebrities should not endorse cryptocurrencies. The regulatory body said that “no prominent figures, including celebrities, sportsmen” should endorse cryptocurrencies to the public. Apart from that, SEBI also added that advertisement disclosures should also talk about a possible violation of laws when dealing with cryptocurrencies.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.