According to the Securities and Exchange Board of India, (SEBI), it has suggested that celebrities and sportsmen be banned from advertising and endorsing cryptocurrency products. Public figures could also be held responsible for violating laws when they promote crypto products, according to the regulator.
SEBI’s Crypto Advertising and Endorsement Proposal
The Securities and Exchange Board of India (SEBI), the country’s securities and commodity market regulator, has proposed prohibiting public figures, including celebrities and sportsmen, from endorsing crypto products, Businessline reported last week. The regulator also suggested that advertisers be required to report possible violations of law.
SEBI recently shared its view on the subject with India’s Parliamentary Standing Committee on Finance when it was questioned about various crypto issues, sources told the publication. After being questioned about various crypto issues, sources told the publication that SEBI submitted a detailed response in writing to the committee.
SEBI was also requested by India’s Ministry of Finance to comment on crypto advertising guidelines that were published February 1st, 2018 by Advertising Standards Council of India.
SEBI wrote, according to reports:
Crypto products can be regulated by celebrities and sportsmen. or their voice shall not be used for endorsement/advertisement of crypto products.
The securities regulator suggested that public figures could be held responsible for endorsing cryptocurrency products. This would violate several laws including the Consumer Protection Act.
In addition, SEBI suggested adding the following statement to the ASCI disclaimer: “Dealings in crypto products may lead to prosecution for possible violation of Indian laws such as FEMA, BUDS Act, PMLA, etc.”
ASCI’s crypto guidelines, which went into effect on April 1, state: “Since this is a risky category, celebrities or prominent personalities who appear in such advertisements must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers.”
Meanwhile, the Indian government is working on the country’s crypto policy. To discuss the topic of crypto regulation, officials from the Finance Ministry met with representatives from the International Monetary Fund and the World Bank. India’s finance minister recently said that the decision on crypto regulation will not be rushed. India currently taxes crypto income at 30%.
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