ASCI Reveals More Than 400 Crypto Advertisements Violating
Guidelines in India
The
Advertising Standards Council of India (ASCI) has reportedly revealed that more
than 400 crypto ads violated its guidelines so far this year. The majority of
complaints the ad council receives are directed at influencers. "Some
influencers talk so confidently about crypto without fully understanding
it."
The Most Complaints Concern Influencers
The
Advertising Standards Council of India (ASCI) has reportedly revealed that it
received 453 complaints relating to crypto ads between January and May.
The council
added that out of all complaints, 419 cryptocurrency advertisements required
modifications, the Economic Times reported on Monday, noting that most
complaints concern influencers.
Manisha
Kapoor, CEO of ASCI, described:
"Some
influencers talk so confidently about crypto without fully understanding. It
does create an impression that it is safe, it is fine, and it is a cool
thing."
She explained
that the council will continue to focus on adequate disclosures and risk
disclaimers for payment-based promotions. The standards body is currently
focusing on raising 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:
"This is
in violation of our guidelines. We will escalate it to the government in case
of no compliance."
There are two
sets of guidelines applicable to most crypto ad formats in India. One covers
the promotion and advertisement of cryptocurrencies, crypto exchanges, and
non-fungible tokens (NFTs). It was issued by the ASCI in February and
has been effective since April.
The other set
of guidelines is effective from June 2021 and regulates the advertising
and marketing activities of influencers.
The ASCI is a
self-regulatory body and its guidelines are not legally binding in India. If
there is a breach of guidelines, it publishes the names of those in violation
and reports the case to the relevant government regulators.
In May, the
Securities and Exchange Board of India (SEBI) proposed banning public
figures, including celebrities and sportsmen, from advertising and endorsing
crypto products and services. The securities watchdog also proposed that public
figures be held liable for any legal violations when promoting crypto products.
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