'Unregulated, can be risky' disclaimer must in cryptocurrency advertisements
Mumbai, February 23
Advertisers will have to prominently carry a disclaimer for crypto products and non-fungible tokens (NFTs) mentioning that these products are “unregulated and can be highly risky”, according to the Advertising Standards Council of India (ASCI).
Besides, the regulatory body said such advertisements should mention there may be no regulatory recourse for any loss from such transactions.
New norms from April 1
- Advertisers will have to prominently carry a disclaimer for crypto products and NFTs mentioning that these products are “unregulated and can be highly risky”
- Advertisements should also mention that there may be no regulatory recourse for any loss from such transactions
All Virtual Digital Assets (VDAs), which are commonly referred to as crypto or NFTs, will have to put the disclaimer in a “prominent and unmissable” way in campaigns for products and services.
The announcement of the guidelines, done after consultations with industry stakeholders, government and financial regulators as well, comes as the advertising for the controversial products and services is on the upswing.
The government is yet to come out with a law on such assets but has proposed a tax on gains made from such transactions which has been welcomed by the crypto players as a move to legitimise the industry, while the RBI has been firm in calling for a complete ban on such activities saying they are a threat to financial stability.
“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,” ASCI chairman Subhash Kamath said. —
