2 November 2024
ASCI Issued Advertisement Guidelines For Virtual Digital Assets
Today, the Advertising Standards Council of India (ASCI) has published the guidelines for promoting and advertising Crypto assets and non-fungible tokens (NFTs). The decision was taken amid concerns that investors are not adequately informed about the risks associated with Variable Dearness Allowance (VDA). ASCI is the Indian advertising industry's self-governing body.
As per the media, the guidelines were issued after consulting with all stakeholders, including the government. ASCI states that all VDA products and VDA exchanges or featuring VDAs services should carry the following guidelines:
“Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
- Disclaimer should be always included whether in print or static, “equal to at least 1/5th of the advertising space at the bottom of the advertisement in an easy-to-read font, against a plain background, and to the maximum font size afforded by the space.”
- Following words, “currency”, “securities”, “custodian” and “depositories” may not be used in advertisements of VDA products or services as these terms are used for regulated products.
- Information provided in the advertisement must not contradict the “warnings that the regulated entities provide to customers.”
- Returns on investment information for a period less than 12 months should not be included.
- VDA services and products are not allowed to show that they are a solution to financial problems, personality problems, or other such drawbacks. Also, they are not permitted to feature a minor or someone who appears to be minor, directly dealing with the product.
- The advertiser’s name should be clearly mentioned so that the average consumer can easily understand.
- Any Celebrities or prominent personalities appearing in VDA advertisements must take special care to ensure the advertisement is not misleading as this is a risky business.
- Information regarding profitability and costs should be clear, accurate, sufficient, and updated.
- One cannot show that understanding or investing in VDA products is easy. Risks should not be downplayed with this category.
- VDA products and services are not allowed to be compared to any other asset class which is regulated.
The Chairman of ASCI, Subhash Kamath, said that “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”.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.
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