According to the Advertising Standards Council of India, more than 400 cryptocurrency ads have violated their guidelines this year. A majority of the complaints that were received by ASCI are directed at influential people. “Some influencers talk so confidently about crypto without fully understanding it.”
419 Ads in Violation — Most Complaints Concern Influencers
Advertising Standards Council of India (ASCI), reportedly disclosed that 453 complaints related to crypto ads were received between January and May.
According to the Economic Times, Monday’s report by Monday’s Economic Times, 419 of all complaints related to cryptocurrency ads required modification. The Economic Times noted that majority of complaints are about influencers.
Manisha Kaplan, ASCI CEO, describes:
Influencers speak confidently of crypto, but they don’t fully understand it. It does create an impression that it is safe, it’s fine and a cool thing.
She stated that the council would continue to work on proper disclosures and risk disclaimers in relation to payment-based promotion. The standard body is currently working to increase awareness of crypto-exchanges.
“Some of these influencer ads don’t even talk about the risks, which is not right and against our guidelines. Technically, they are ads with no disclosures or disclaimers, which is mandatory,” Kapoor detailed, elaborating:
These are in direct violation of our guidelines. In the event of non-compliance, we will escalate the matter to the government.
Two sets of guidelines are applicable for most cryptocurrency ads in India. It covers advertisement and promotion of cryptocurrency, crypto exchanges, non-fungible tokens (NFTs), and the other covers advertising and promotion. The ASCI issued it in February, and it went into effect April.
Another set of guidelines was established in June 2013 and regulates advertising and marketing by influencers.
ASCI, which is an independent regulator, does not have legal binding guidelines in India. When there’s a violation of the guidelines, the ASCI publishes names and escalates cases to the relevant government regulators.
The Securities and Exchange Board of India proposed in May that public figures (including celebrities and athletes) be prohibited from advertising and endorsing cryptocurrency products and services. A public liability for illegal promotion of crypto products was also suggested by the Securities and Exchange Board of India (SEBI).
How do you feel about crypto-related advertisements that violate Indian advertising guidelines? Please comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.