ASCI issues guidelines for crypto, NFT ads in India

All ads for crypto products and exchanges must include this disclaimer prominently: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” This disclaimer should apply to all formats of ads across different media, said the Advertisements Standards Council of India ASCI on Wednesday as they issued guidelines for advertising virtual digital assets (VDAs) like cryptocurrencies and Non-Fungible Tokens (NFTs).

While the guidelines are similar to those in place for the mutual funds market and share trading, they could curtail crypto startups, which have been advertising more frequently in India, with full page newspaper ads and celebrity endorsements, from positioning their products as ways to make easy money. Mutual fund products, with disclaimers, can be advertised a little more freely as they are tightly regulated and generally less volatile.

These guidelines were formed in consultation with the crypto industry and the government, the ASCI said in a press release. It’s unclear which companies were consulted; Entrackr has reached out to the council for clarity.

While ASCI guidelines often restrict the kinds of rhetoric an advertiser can employ, they also provide industries with a layer of legitimacy — in the last few months, the council has worked on advertising guidelines for industries like ed-tech and online gambling sites (known as “real money gaming”; most sites concerned don’t fit India’s legal definition of gambling) that have been increasingly under scrutiny by regulators and the government.

Source: https://entrackr.com/2022/02/asci-issues-guidelines-for-crypto-nft-ads-in-india/