The Advertising Standards Board of India has published guidelines for advertising digital assets in the country after consulting with the government and stakeholders.
According to the Advertising Standards Council of India (ASCI) document, print advertisements for cryptoassets must contain a disclaimer. This disclaimer must occupy at least 1/5 of the size of the advertisement, and must be printed in an easily readable font on a plain background. In audio advertisements for cryptoassets, the disclaimer must be pronounced at the end of the advertisement at a normal voice tempo. These rules also apply to social media posts.
The agency banned the use of the words “currency”, “securities”, “custodian” and “custodians” in advertisements for digital assets or cryptocurrency services because users associate these words with regulated products. Cryptocurrency advertisements must contain accurate, complete and up-to-date information. For example, “zero cost” could include all consumer costs associated with the offer, and this should be indicated in the advertisement.
In addition, advertisements for cryptocurrencies may not show minors and claim that digital assets can solve monetary or personal problems. Advertisements should not contain guarantees of increased profits in the future, and crypto assets cannot be compared with any other regulated asset class.
ASCI said that these measures are aimed at protecting investors so that advertising of cryptocurrencies does not mislead people and does not use their possible “gaps” in knowledge or lack of experience in investments. The agency advises celebrities and other well-known individuals promoting cryptocurrencies to exercise extra caution in their statements, as this is a risky category of assets.
The government will continue to work on issues related to the advertising of cryptocurrencies. In the past few months, it has become too “aggressive” and does not properly disclose the risks associated with such products, ASCI noted. However, the leaders of local cryptocurrency exchanges took the news positively, as they now have clear recommendations from the regulator on advertising their services in India.
“Given that the cryptocurrency space is currently unregulated in India, it is important that advertising communicates in advance the risks associated with investing in these products,” said ASCI General Secretary Manisha Kapoor.
