Following India being closer To Crypto Legalisation With 30% Tax and its Central Bank’s Deputy Governor’s call for Cryptocurrency ban, the Advertising Standards Council Of India (ASCI) on has issued guidelines for all cryptocurrency virtual digital assets (VDA)-related advertisements which will be applicable on or after April 1 to clamp down on risky crypto ads.
All crypto/NFT ads must carry the following disclaimer, “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
No advertisement for crypto/digital asset products or exchanges may show a minor, or someone who appears to be a minor, directly dealing with the product, or talking about the product, said the advertising watchdog.
Since this is a risky category, “celebrities or prominent personalities who appear in crypto/NFT advertisements must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers,” the ASCI warned.
The ASCI noted that several of these advertisements do not adequately disclose the risks associated with such products.
“Advertising of virtual digital assets and services needs specific guidance, considering that this is a new and as yet an emerging way of investing. Hence, there is a need to make consumers aware of the risks and ask them to proceed with caution,” said Subhash Kamath, Chairman of ASCI.
“Every advertisement for VDA products must clearly give out the name of the advertiser and provide an easy way to contact them (phone number or email). This information should be presented in a manner that is easily understood by the average consumer,” according to new guidelines.
“No advertisement may show that VDA products or VDA trading could be a solution to money problems, personality problems or other such drawbacks.”
Advertisers and media owners must also ensure that all earlier advertisements must not appear in the public domain unless they comply with the guidelines, post April 15, 2022.
Although no Crypto Bill yet, the Finance Minister, Nirmala Sitharaman also proposed 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold. Gifts in crypto and digital assets will also be taxed.
The ASCI extensively consulted with different stakeholders, including government and the virtual digital asset industry — to frame guidelines for virtual digital asset advertising.
Source : telanganatoday