On Wednesday, the Advertising Stands Council of India (ASCI) issued a set of 12 recommendations regarding the promotion and advertisement of virtual digital assets (VDA), such as cryptocurrency.
According to ASCI, the top advertising watchdog created the new rule after thorough consultation with crypto ecosystem stakeholders as well as the government.
The advertising standards are also the country’s first legislative foundation for the digital asset market, coming at a time when the government is still working on a crypto bill.
Here are five key takeaways from the bill for your better understanding.
Takeaways From The New Crypto Bill
- After April 22, all crypto marketing must include a disclaimer stating that crypto and NFT products are unregulated and “extremely dangerous.” The disclaimer must be displayed in all of the major languages.
- A crypto asset cannot be compared to the regulated assets in the advertisement.
- When referring to their products or services, crypto advertisements must avoid using terms like “money,” “securities,” “custodian,” and “depositaries.”
- In no way, shape, or form, crypto ads should pitch their products as a solution to money concerns.
- In order to be profitable, crypto ads must provide clear, accurate, sufficient, and up-to-date information.
ASCI also stated that advertisements that provide information on the cost or profitability of items should be made clear, as well as provide accurate and sufficient information and a simple manner for consumers to contact the advertiser.
Advertisements should not promise or guarantee profits, relate VDA products to a regulated asset class, or feature minors in the ads, according to the 12-point guideline.
The guidelines will apply to all advertisements published after April 1.
“We had several rounds of discussion with the government, finance sector regulators, and industry stakeholders before framing these guidelines,” said Subhash Kamath, chairman, ASCI.