Indian watchdog issued crypto advertising guidelines

ASCI, India’s advertising watchdog, created guidelines for ads related to virtual digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets.

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The Advertising Stands Council of India (ASCI) published guidelines for the rules that advertisements related to cryptocurrencies or virtual digital assets must follow, which will apply from April 1. Previous ads should not appear in the public domain unless they comply with the new guidelines.

ASCI said it consulted widely“con diferentes partes interesadas, incluido el gobierno y la industria de activos digitales virtuales” to frame these guidelines.

The agency also justifies the measure by saying that “the advertising of these products has been very aggressive in recent months” and that“varios de estos anuncios no revelan adecuadamente los riesgos asociados con dichos productos”. He says, therefore, that he dictates the new rules “in order to safeguard the interest of consumers and ensure that advertisements do not mislead or exploit consumers’ lack of experience of these products”.

Disclaimer of Liability

According to ASCI’s own information in a press release, the main guideline requires that all VDA (virtual digital asset) product advertisements and VDA exchanges or featuring VDA incluyan el siguiente descargo de responsabilidad:

“Crypto products and NFTs non-fungible token, a unique non-interchangeable piece of digital content that is stored on a distributed ledger (blockchain). are unregulated and can be very risky. There may be no regulatory recourse for any losses from such transactions.”

Warns that the disclaimer must be visible, “in print or static form, equal to at least 1/5 of the advertising space at the bottom of the ad in an easy-to-read font, against a plain background and in the maximum font size allowed by the space.” In the audiovisual medium, the release must be accompanied by a voice that reads it aloud.

According to the guidelines, the words “currency”, “securities”, “custodian”, “custodian”. y “ depositaries” may not be used in advertisements for VDA products or services. consumers associate these terms with regulated regulation is when something is controlled by a specific set of rules. products.

More rules

The guidelines also seek to ensure that the cost or profitability of VDA products contain clear, accurate, sufficient and up-to-date information. For example, “zero cost” must include all costs that the consumer could reasonably associate with the offer or transaction. The guidelines include a requirement that “shall not include income for periods of less than 12 months”. “ in advertisements to ensure that “information on past performance is not provided in a partial or biased manner”.

Minors (or those who appear to be minors) may not be used in advertisements.

Also, prevent tampering with the following rule: “No advertisement can show that VDA products or VDA trade could be a solution to money problems, personality problems or other similar problems.”

In addition In addition, “no advertisement shall contain statements that promise or guarantee a future increase in earnings. Igualmente, “No advertisement can show that understanding VDA products is so easy that consumers don’t have to think twice before investing. Nothing in the ad should minimize the risks associated with the category”. .

India’s advertising watchdog finds that several of the cryptocurrency-related ads “do not adequately disclose the risks associated with such products”.

Warnings in other countries

Back in November 2021, India’s Prime Minister Narendra Modi chaired a meeting to consider the regulatory outlook for cryptocurrencies where reports said a strong consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. was reached to stop “attempts to mislead the youth through over-promising and non-transparent advertising.” He noted that crypto could be a threat to the younger ones .

It’s worth noting that other countries have established similar rules for crypto advertising, among them the United Kingdom , Spain y Singapore recently.

Sources: ASCI press release, Coindesk , archivo

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