The Indian regulator told ASCI that the guidelines for crypto and NFT ads will be implemented from April 1, 2022, and that advertisers must ensure that their previous ads do not appear in the public domain without the new disclaimer.
Ads and Disclaimers:
The local watchdog ASCI has required that the guidelines be adhered to and that crypto ads display a disclaimer and that these unregulated products can be extremely risky, as no party can be recourse in the event of any loss.
In the statement of the authority:
Crypto and NFT products are unregulated and can be risky.
There may be no regulatory path for any loss arising from such transactions.
ASCI guidelines require crypto companies to display this disclaimer prominently in their advertisements to the media.
It is worth noting that ASCI is a self-regulatory body for the Indian advertising industry.
The authority has previously made clear that its guidance should not be seen as legal recognition or endorsement of the industry or sector.
The latest instructions from the authority came after some parties were affected by advertisements for some cryptocurrencies, many of which were misleading and aimed at unusually exploiting consumers.
Manisha Kapoor, Secretary General of ASCI, said:
Globally, this is an emerging technology, and the products in the cryptocurrency industry have experienced huge fluctuations.
We believe that with these guidelines, ads will be more fair and transparent.
Echo the guidelines with official sentiment:
Earlier, in the budget proposals presented in Parliament on February 1, the Indian government proposed imposing a tax deduction of 1% at source on all crypto transactions and a flat 30% on all profits.
The government also announced the launch date for the official digital currency of the Central Bank, which will be in the next fiscal year.
The position of the Indian government or the central bank on digital currencies has not changed.
Recently, a senior official of the Reserve Bank of India claimed that cryptocurrencies should be banned because they are like Ponzi schemes that pose a threat to financial stability while having no intrinsic value.
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