The Advertising Standards Council of India (ASCI) has presented tactful guidelines and rules that will bind the advertising of digital assets. The Council stated in a press release that the publicity for crypto has recently been quite aggressive, hence, the need for definitive advert regulation.
The government has often communicated its fears towards crypto and is still building up structures that will guide digital currencies and non-fungible tokens (NFTs) distribution. The promotion for digital assets was formerly left to the discretion of the crypto players and vital information was scarcely available.
As a core promotion body, the ASCI pointed out that the danger involved in trading crypto was rarely mentioned. Consumers were diving into unchartered crypto territory with almost little or no risk-declared data to back up their investments.
To tackle this, the ASCI in conjunction with the government of India and major crypto players presented a disclaimer that must be attached to all adverts made either in print, audio, or visuals on digital assets, stating their unregularized nature.
“Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
The Council also placed a ban on the use of certain words for digital assets promotional content. Words like ‘securities’, ‘currency’, ‘depositories’ and ‘custodian’ should be avoided as these might all insinuate regularization to users.
Popular personalities and celebrities must have carried out thorough research about any digital asset or NFT before publicly giving assertions. Per the ASCI, this must be done to avoid misleading users into believing unverified information.
Crypto Exaggerations Might be Demystified
These listed guidelines amongst many others will be effective from Friday 1st April 2022. Previous adverts which do not agree with the listed strategies will be expected to be taken down on or before Friday 15th April 2022.
The Indian government is relentless in supervising the interest of its citizens in digital assets. Several regulation structures are constantly being endorsed and implemented to shield users against the risks associated with their crypto investments.
The recently proposed 30% tax on crypto assets was also done towards the legalization of crypto in India. The ASCI hopes that these approaches will help reduce the ambiguity and exaggerations surrounding digital assets.