The Advertising Council of India (ASCI) on Wednesday launched a set of 12 guidelines for the marketing and advertising of virtual digital assets (VDA), including cryptocurrencies.
ASCI said the new guide was developed by the top ad watchdog after extensive consultations with stakeholders in the cryptocurrency ecosystem as well as the government. The advertising guidelines also set out the first legal framework related to the country’s digital asset market, at a time when the government has not yet completed a cryptocurrency bill.
The new advertising structure for cryptocurrency will take effect on April 1, the same day as the infamous 30 percent tax on cryptocurrency takes effect. Let’s take a look at five key points in the guidelines that will fix the future of content in advertising for crypto companies.
All crypto announcements after April 22 must include a disclaimer to make it clear that crypto and NFT products are unregulated and “can be extremely dangerous”. This disclaimer must be displayed in all major languages.
Advertising does not allow comparison of a crypto asset with regulated assets.
Cryptocurrency ads should refrain from using the terms “currency”, “units”, “managers” and “custodians” when referring to their products or services.
Cryptocurrency ads should in no way show their products as a solution to money problems.
Crypto advertisements that talk about profitability must contain clear, accurate, sufficient and up-to-date information.
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The notice board also indicates the size of the disclaimer and how it should be broadcast on various social media platforms. Ramalingam Subramanian, Head of Branding, Marketing and Communications at CoinDCX, noted that “the new rules provide more clarity” to cryptocurrency advertisers. He said:
“The release of ASCI Custom Advertising Rules is a very promising and long-awaited step for the crypto industry in India. CoinDCX is a member of ASCI and works actively to comply with ASCI Standard Advertising Rules.”
Siddharth Sujani, CEO of the blockchain analysis firm Crebaco, told Cointelegraph:
This is a great feature of the relevant regulators, and it is always good to have a disclaimer that gives a better view of the market instead of promoting it as a “get rich quick” scheme.
Sujani added that the new guidelines for advertising cryptocurrencies also suggest better cryptocurrencies in the future and show that the government is taking stakeholder perspectives for better regulation.
Aggressive advertising for cryptocurrencies has been the subject of Indian media for most of the last two quarters of 2021 due to the fact that the beef market and the Indian crypto markets have seen a huge influx of new users. This led the Delhi High Court to notify the government of the development of relevant guidelines and disclaimers in July last year.