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      ASCI Issues 12-Point Guideline for Crypto and NFT Ads

      Advertising Standards Council of India (ASCI) has issue a set of guidelines for virtual digital asset (VDA) adverts like crypto and non-fungible tokens (NFTs). Set to take effect starting on or after 1st April 2022.

      ASCI’s new guidelines mandate standardised disclosures for crypto ads and has also restrict the use of words such as “currency” potentially misleading for investors.

      Existing and older advertisements that don’t comply with the guidelines before 15th April will not be allow to be broadcast on public forums.

      As per the guidelines, all virtual digital asset-related ads released on or after 1st April 2022 must carry the disclaimer which reads,

      “Crypto products and NFTs are unregulate and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”

      The disclaimer will have to be carried in promotional content on print, video, and audio media.

      Should there be a limit on characters, a shortened disclaimer has to be use, follow by a link to the full disclaimer.

      In print or static, the disclaimer must be 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, as per the guidelines.

      In audio, the disclaimer must be spoken at the end of the advertisement and the voiceover should be at a normal speaking pace and must not be hurried.

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      The guidelines also cover social media posts.

      The advertising body has also barred advertisers to use the words “currency”, “securities”, “custodian” and “depositories” in advertisements of VDA products or services as “consumers associate these terms with regulated products”.

      Advertisements that provide information on the cost or profitability of VDA products must contain clear, accurate, sufficient, and updated information.

      ASCI Said :

      “For example, ‘zero cost’ will need to include all costs that the consumer might reasonably associate with the offer or transaction. Information on past performance shall not be provided in any partial or biased manner. Returns for periods of less than 12 months shall not be included,”.

      Subhash Kamath, chairman, ASCI, 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.”

      Since this is a category is seen as “risky” by the ASCI, celebrities or prominent personalities who appear in crypto or NFT 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.

      Disclaimer :

      Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by 2YODOINDIA. 2YODOINDIA shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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