Five Key Takeaways From India's Official Crypto Ads Guideline

The Advertising Booth Council of India (ASCI) published a set of 12 guidelines for promotions and advertising of virtual digital assets (...



The Advertising Booth Council of India (ASCI) published a set of 12 guidelines for promotions and advertising of virtual digital assets (VDAs), including cryptocurrencies, on Wednesday.

The chief advertising watchdog developed the new guideline after extensive consultation with crypto ecosystem stakeholders as well as the government, ASCI said. The publicity guidelines also mark the first legal framework related to the digital asset market in the country at a time when the government has yet to finalize the Crypto Bill.

The new crypto advertising framework is set to go into effect from April 1, the same date the infamous 30% crypto tax is set to go into effect. Let’s take a look at five key takeaways from the guidelines that hold the future of content in crypto firm advertisements.

  1. All post-April 22 crypto advertisements must add a disclaimer to explain that crypto and NFT products are unregulated and “can be very risky.” The disclaimer must be displayed in all dominant languages.
  2. It is not permitted to compare a crypto asset to the regulated assets in the announcement.
  3. Crypto advertisements should refrain from using “currency”, “securities”, “custodian” and “custodians” when referring to their products or services.
  4. Crypto advertisements must not present their products as a solution to money problems in any way.
  5. Crypto advertisements talking about profitability should contain clear, accurate, sufficient and updated information.

Related: UK advertiser ASA continues its crypto ad ban spree

The advertising council also specified the print size of the disclaimers and how they should be distributed via different social media. Siddharth Sogani, CEO of blockchain analytics firm Crebaco, told Cointelegraph:

“This is a great move by the regulators involved and it’s always good to have disclaimers that provide better insight into the market rather than being propagated as a ‘get-rich-quick scheme’.

Sogani added that the new guidelines on crypto advertising also hint at better crypto frameworks in the future and show that the government takes into account the perspective of stakeholders to regulate better.

Aggressive crypto ads have been the focus of Indian media for the majority of the last two quarters of 2021, due to the bull market and Indian crypto exchanges seeing a large influx of new users. This led to the Delhi High Court Notifies Government formulate appropriate guidelines and disclaimers in July last year.