Advertising Standards Council of India (ASCI) has issued fresh guidelines for crypto and NFT advertisements in India earlier this week. Recently, there has been a huge spike in crypto commercials on TV and social media. ASCI noted that most of these ads don’t clearly disclose the risks associated with crypto trading. So in order to make sure that such ads do not mislead consumers, ASCI has laid down new guidelines for crypto ads in India.
New Crypto Ads Guidelines India
These new ad guidelines will be applicable to all virtual digital asset (VDA) related ads that will be released on or after April 01, 2022. These guidelines will make sure that ads are truthful and don’t mislead consumers by ambiguity or exaggeration, and also don’t exploit their lack of knowledge.
Here are things you should know about new crypto and NFT ad guidelines in India:
1. Disclaimer in Crypto Ads
First of all, ASCI has announced that there should be a standardized disclaimer in all print, video, or audio advertisements.
As per ASCI, the disclaimer should be “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
The council has also specified the size for the disclaimer and in which manner it should be broadcast on all mediums.
In print or static ads, the disclaimer should be equal to at least 1/5th of the ad space and it should be at the bottom of the ad in an easy-to-read font on a plain background, and in the max font size.
While in the video ads, the disclaimer should be at the end of the advertisement and a voiceover must be there alongside the text. On social media, the disclaimer must be in the caption and in the picture or video attachments as well.
2. No More Words Like Currency and Securities
The next point states that crypto ads cannot use the words “currency”, “securities”, and “depositories” as consumers may associate all such terms with regulated products. As this is a known fact that crypto and other VDAs are still not regulated by any authority.
3. No Comparison with Regulated Assets
Crypto and other VDAs must not be compared to any regulated assets like currency. Also, the information provided in these ads shall not contradict the information or warning that the regulated bodies provide to customers while marketing VDAs.
4. Info on Cost, Profitability shall be Accurate
Crypto ads that talk about the cost or profitability of VDAs shall contain accurate and sufficient information about the same. For example, if there is “zero cost” mentioned in the ad, it should clear the doubts about all the costs that the consumer might bear.
5. Can’t Show Returns for Less than 12 Months
The council also states that these ads also shall not provide any information from the past in any partial or biased manner. More importantly, the advertisers cannot show returns for less than 12 months periods in their ads.
6. Name and Contact Details of Advertiser
Every crypto ad must also include the name of the advertiser as well as tell how to contact them. So it should also include a customer care phone number or email. This data should be presented in the ad in such a way that anyone can easily understand.
7. No Minors in Ad Talking About Crypto
The next thing in the guidelines is about minors featuring in crypto ads. So the ads for VDAs or crypto exchanges can not show a minor, or someone who looks like a minor, dealing or talking about crypto.
8. Can’t Show Crypto Trading as Solution to Money Problems
You might have seen crypto ads in which they show that investing in crypto is the solution to all problems and most importantly money problems. Well, with the new guidelines, no advertisement can now show that crypto trading can be a solution to money or any other problems in life.
9. No Statements Promising Guaranteed Profits
As per the new ad policy, no crypto advertisement shall contain such statements that promise or guarantee consumers a future increase in profits.
10. Can’t Downplay Risks Associated with Crypto Trading
No crypto ad may show that understanding crypto is easy that they don’t need to think twice about investing in such VDAs. So advertisers should make sure that nothing in the ad should downplay the risks involved in trading.
11. Celebs Ensure They Aren’t Misleading Consumers
Ranveer Singh in a Crypto Ad
You might have seen celebrities and other prominent personalities appearing in VDA
ads. So the council wants these celebs to ensure that they have done their research about the statements and claims made in the ad. So they do not mislead consumers.
The new ad guidelines will be applicable to all advertisers that will release their ads on or after April 01, 2022. The council wants advertisers to make sure that all the previous ads must not appear in public unless they comply with the new guidelines after April 15, 2022.
Subhash Kamath, ASCI Chairman, said, “We had several rounds of discussion with the
government, finance sector regulators, and industry stakeholders before framing these
guidelines. Advertising of virtual digital assets and services needs specific guidance, considering that this is a new and as yet an emerging way of investing. Hence, there is a need to make consumers aware of the risks and ask them to proceed with caution”.
You can read more about new crypto ads guidelines in India here.
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