The Advertising Standards Council of India (ASCI) has proposed regulations for marketers who want to run commercials/crypto ads for virtual digital assets (VDAs), such as cryptocurrency and non-fungible tokens (NFTs).
In this regard, all crypto ads issued or published after April 1, 2022, will be subject to the rules. Also, previous advertising shall not be published in the public domain after April 15, 2022, unless they follow the new criteria.
What Is The Guideline:
All marketing for VDA goods, VDA exchanges, or showing VDAs should include a warning that states, “Crypto products and NFTs are unregulated and can be very hazardous. There might be no regulatory remedy for any losses incurred as a result of such transactions.”
This warning should also be visible and unmissable, according to the regulating advertising organization, which has varied recommendations for advertisements appearing in different media. It wants advertising to convey information in a way that customers can understand.
Advertisers are also advised not to use the phrases “currency,” “securities,” or “deposits” when promoting VDA goods and services, according to ASCI, because such terms are associated with regulated products. Advertisements should not conflict with the information or cautions regulating companies while offering these to the customers.
The guidelines also warn against misrepresenting cost and profitability, using minors in VDA product advertisements, pushing VDA goods as a solution to financial or personality issues, and downplaying the risk associated with these products, among other things.
All advertising must also clearly state the identity of the sponsors as well as a way to contact them, such as via phone or email. To prevent deceiving clients, one of the published standards asks all celebrities to undertake their own due research when it comes to the assertions they make in commercials.
“The ASCI rules are a positive start toward standardizing marketing in the VDA arena. Although the VDA sector supports all efforts to safeguard investors, there are several complexities that must be addressed as the area evolves. In response to the new guidelines, Ashish Singhal, the creator and CEO of CoinSwitch, said adding, “We will continue to work with ASCI and other stakeholders to improve them further.”
“All investment advertisements and campaigns have an obligation to inform consumers about the risks, associated volatility and liquidity constraints, and other elements of the asset.”
In a statement, Keyur Patel, chairman of the NFT platform GuardianLink, stated, “Even media, ad agencies, and other supporting ecosystems have the obligation to educate the same market in a responsible manner.”
