India releases guidelines for crypto asset advertisements, prohibits the use of "currency" and "securities" to avoid confusion.
The Advertising Standards Council of India (ASCI) has released advertising and promotional guidelines for crypto assets and related services. ASCI states that these guidelines apply to all advertisements related to Virtual Digital Assets (VDA), including cryptocurrencies and NFTs. The rules are applicable to advertisements published on or after April 1, 2022.
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The Advertising Standards Council of India (ASCI) has issued guidelines for the promotion and advertisement of crypto assets and related services. The guidelines apply to all advertisements related to Virtual Digital Assets (VDA), including cryptocurrencies and NFTs. These rules will apply to advertisements released on or after April 1, 2022.
ASCI Chairman Subhash Kamath stated that these guidelines were the result of extensive discussions between the Advertising Standards Council, the government, regulatory bodies in the financial sector, and industry stakeholders. The guidelines will be applicable to all advertisements released or published on or after April 1, 2022.
According to the guidelines, advertisements for crypto asset services must first include a disclaimer: "Cryptocurrency products and NFTs are unregulated and high-risk. Any losses arising from such transactions may not be recoverable through regulatory recourse." The guidelines explain how disclaimers must be made to ensure they are prominent and not easily overlooked by ordinary consumers.
Terms such as "currency," "securities," "custodian," and "depository institution" are not to be used in advertisements for VDA products or services, as consumers may associate these terms with regulated financial products. VDA products should not be compared to any other regulated asset class.
Furthermore, advertisements must not feature minors or individuals who appear to be minors, claim to solve financial or other problems, promise guaranteed future profit growth, "provide information on past performance in any one-sided or biased manner, excluding returns of less than 12 months," ASCI added.