With the global rise of the cryptocurrency and NFT market, various governments and state entities are issuing notices to control the trading and creation of digital assets within their borders. The Advertising Standard Council of India recently issued guidelines that curb certain aspects of advertising digital assets. The ASCI stated that they felt the need to issue the guidelines upon noticing the lack of risk disclosure in certain digital assets-related advertisements.
The guidelines published overview a wide range of aspects, from establishing strict names to ensuring certain information is always presented in advertisements. Any advertisements related to crypto or NFT trading being published after April 1st will need to adhere to these guidelines, and all previous advertisements that do not comply with these guidelines will have to be removed by 15th April.
Firstly, all advertisements will have to carry a prescribed disclaimer that states the high-risk factor of trading Cryptocurrency and NFT, and also the lack of regulatory recourse for any losses that occurred. Secondly, words such as ‘currency’, ’security’, and various other words will not be allowed in any form. The reasoning behind the ban on such words is that Indian consumers are likely to relate these words with regulated products.
Further guidelines mention that advertisements will need to publish facts and not mislead by any means. This includes information regarding the cost of trading, revenue, contact details, etc. The guidelines also ban several aspects such as comparing cryptocurrencies to regulated products, showcasing trading as an economic solution, mentioning that this is an easy-to-understand process, and also the use of minors in advertisements.
Celebrities who take part in these advertisements have also been asked to ensure that they thoroughly understand the products and services they are promoting.