Guidelines Issued | Advertising Crypto-Related Products | VARINDIA News Hour

Guidelines Issued | Advertising Crypto-Related Products | VARINDIA News Hour

The new crypto Ad Rules have arrived and with this the companies dealing in selling crypto assets may turn into crypto liabilities if they don’t follow the rules. Advertising of virtual digital assets and services needs specific guidance, considering that this is a new and as yet an emerging way of investing, since there is a need to make consumers aware of the risks. The Advertising Standards Council of India has introduced a set of 12 guidelines for the advertisement and promotion of virtual digital assets and services such as cryptos and non-fungible assets, almost three months after Prime Minister Narendra Modi slammed “misleading ads” in the cryptocurrency space in November 2021. The guidelines, applicable on ads of crypto-related products from April 1, 2022, say such ads shouldn't carry the words "currency", "securities", "custodian" and "depositories". Ads should carry a disclaimer saying, "Crypto products & NFTs are unregulated and can be highly risky." Information on past performance shall not be provided in a biased manner and there may be no regulatory recourse for any loss from such transactions. The rule comes while there were commercials for cryptocurrency-related products and offerings, which have flooded TV screens over the past year promising easy money, convenient trading, fixed returns and more.

The council has specified the size of print to be used for the disclosure and the manner in which it should be broadcast through the audio-visual medium. In social media posts, such a disclaimer must be carried in the caption as well as any picture or video attachments. The disclaimer must be made in the dominant language of the advertisement. No advertisement may suggest that virtual digital assets could be a solution to money problems. No advertisement shall contain statements that promise or guarantee

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