NEW DELHI: The Advertising Standards Council of India ,ASCI) has introduced guidelines for advertising and marketing of crypto assets, including NFT (non-fungible token) products, even as the government continues to work on the framework for virtual digital assets (VDAs).
The development comes against the backdrop of a marketing blitzkrieg of crypto assets by several exchanges, which have roped in popular celebrities for the commercials that were being targeted at a younger audience.
From April 1, advertisements for these VDAs and their exchanges, or featuring VDAs, must carry the disclaimer: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. ,
In addition, advertisers have been prohibited from using the words “currency”, “securities”, “custodian” and “depositories” as consumers associate these terms with regulated products.
“We had several rounds of discussions with the government, finance sector regulators, and industry stakeholders before framing these guidelines,” said Subhash Kamath, chairman at ASCI. While guidelines for ads across mediums such as print, social media, audio and video have been laid down in detail, ASCI said advertisers will not be allowed to show a minor, or someone who appears to be a minor, directly dealing with VDAs or talking about the products. “We have seen a spat of advertising for virtual digital assets, which could compromise consumer interest in the absence of some guardrails,” said Manisha Kapoorsecretary general at ASCI.
Use of celebrities and high-decibel advertising would attract consumers to these offerings, without full disclosure of the risks, according to the advertising watchdog. Several crypto exchanges that TOI spoke to welcomed the move.
The development comes against the backdrop of a marketing blitzkrieg of crypto assets by several exchanges, which have roped in popular celebrities for the commercials that were being targeted at a younger audience.
From April 1, advertisements for these VDAs and their exchanges, or featuring VDAs, must carry the disclaimer: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. ,
In addition, advertisers have been prohibited from using the words “currency”, “securities”, “custodian” and “depositories” as consumers associate these terms with regulated products.
“We had several rounds of discussions with the government, finance sector regulators, and industry stakeholders before framing these guidelines,” said Subhash Kamath, chairman at ASCI. While guidelines for ads across mediums such as print, social media, audio and video have been laid down in detail, ASCI said advertisers will not be allowed to show a minor, or someone who appears to be a minor, directly dealing with VDAs or talking about the products. “We have seen a spat of advertising for virtual digital assets, which could compromise consumer interest in the absence of some guardrails,” said Manisha Kapoorsecretary general at ASCI.
Use of celebrities and high-decibel advertising would attract consumers to these offerings, without full disclosure of the risks, according to the advertising watchdog. Several crypto exchanges that TOI spoke to welcomed the move.
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