TR; DR Breakdown
- ASCI releases new rules for crypto-ads
- ASCI says in a statement that these standards were developed through extensive consultation
The Advertising Standard Council of India (ASCI) has issued new rules for cryptocurrency-related advertisements which will be effective from 1 June. While the Consumer Complaints Council (CCC), an ASCI committee, did acknowledge that crypto-assets and cryptocurrencies are “still evolving and there is not enough data available to suggest a broad impact.” This follows after India dismisses the ban on cryptocurrency.
The American Association of Advertising Agencies, which is a self-regulatory body for the advertising sector, has ruled that all virtual digital asset advertisements must include a warning informing consumers that “Crypto products and NFTs are unregulated and may be highly dangerous.” Any loss incurred through such a transaction would be void.s.”
ASCI says disclaimers to be made in a way that they are apparent to average Crypto customer
These disclaimers must be made in a way that they are readily apparent to the average customer. ASCI said in a statement that these standards were developed through extensive consultation with stakeholders including the government and the business sector.
The ASCI committee issued these guidelines following complaints from consumers that ads related to cryptocurrency were misleading and deceptive. Some ads even went as far as making “materially misleading claims,” which suggested a significant increase in the value of the product or service contained in an advertisement.
Bitcoin Australia CEO Rupert Hackett welcomed the ASCI’s new rules, saying that they were not an outright ban of crypto-related ads. “This is good news for the industry as it will allow brands to speak more freely about their products and services without fear of breaching guidelines.” He sees this as a step towards encouraging innovation in the market and giving “brands and businesses the freedom to communicate credible claims.”
“We conducted numerous rounds of consultations with the government, finance sector regulators, and industry stakeholders before creating these standards,” ASCI’s Chairman Subhash Kamath says. Because this is a new and still developing way to invest, digital asset and service advertising necessitates specific instructions. As a result, it is critical to inform clients about the dangers.