SEBI Calls For No Celebrity Endorsement Of Cryptos, Ads Should Talk About Possible Violation Of Laws: Report
In India, cryptocurrencies remain unregulated and have been dubbed virtual digital assets (VDA) for taxation purposes.
New Delhi: The Securities and Exchange Board of India (SEBI) has reportedly suggested that celebrities should not endorse cryptocurrencies. As per a report by BusinessLine, the regulatory body has 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. This already holds true for stocks and mutual funds brokerage firms, so it remains to be seen how the latest SEBI call affects crypto advertisements in India.
During an address to the Parliamentary Standing Committee on Finance last month, SEBI members were reportedly quizzed on the various aspects of cryptocurrencies, when the view against celebrity crypto endorsements was communicated. Now, SEBI is said to have submitted a detailed response in writing.
Furthermore, SEBI has also been requested by the Ministry of Finance to offer its views on advertisements and forwarded guidelines by the Advertising Standards Council of India (ASCI).
In India, cryptocurrencies remain unregulated and have been dubbed virtual digital assets (VDA) for taxation purposes.
While this hints that India may eventually ban celebrity crypto ads, the SEBI suggestions don’t come as entirely shocking. As per Sathvik Vishwanath, the CEO and Co-Founder of crypto exchange Unocoin, the same was already true for stock and mutual funds brokerage firms. “As we are dealing with money and returns directly, it is important that a common man does not get influenced by celebrities,” Vishwanath said in a statement.
Finance Minister Nirmala Sitharaman’s proposal of imposing a 30 percent tax on crypto earnings came into effect on April 1. As per the new guidelines, income for crypto will be taxable, even if a taxpayer’s total income is below the threshold limit of Rs 2.5 lakhs.
Apart from that, a report earlier this month also suggested that the GST Council could be considering levying a 28 percent tax on cryptocurrencies and all related services.
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