Amid the rising popularity of cryptocurrencies in India, the Advertising Standards Council of India (ASCI) has issued guidelines for advertising for virtual digital assets. With 10.07 crore investors, India has the highest number of cryptocurrency traders in the world, according to broker discovery and comparison platform BrokerChooser. In order to lure more and more customers, the cryptocurrency exchanges have recently started aggressive advertising. From bringing in favorite Bollywood celebrity for a TV commercial to promoting them through the most popular content creators, the digital asset exchanges spent millions on advertising.
The ASCI noted that these ads often do not sufficiently reveal the risk of cryptocurrency and NFTs. To ensure that these advertisements do not take advantage of consumers’ lack of knowledge about these investment products, the agency has introduced new guidelines.
All advertisements for VDA products and VDA exchanges, or with VDAs, must contain the following disclaimer. “Crypto products and NFTs are unregulated and can be very risky. There may be no legal remedies for any loss from such transactions.” according to the ASCI.
In print or static, equal to at least 1/5th of the advertising space at the bottom of the ad in an easily legible font, against a plain background,
and up to the maximum font size provided by the space. In video, the disclaimer at the end of the ad should be placed against a plain background. A voice-over must accompany the disclaimer in text. The voice-over must be at a normal speaking pace and must not be rushed, according to the guidelines. With audio, the disclaimer should be spoken at the end of the ad.
In social media posts, such a disclaimer must be stated in the caption as well as in any photo or video attachments. The disclaimer in the caption should be placed first at the beginning of the message. “True social media posts. whether ads have restrictions on text in the static image, the disclaimer must be stated in advance in the caption before the fold,” the ASCI added.
For stories on social media that disappeared within 24 hours, the said disclaimer at the end of the story must be pronounced appropriately. In formats where there is a character limit, the following abbreviated disclaimer must be used “Crypto products and NFTs are unregulated and risky” followed by a link to the full disclaimer.
The disclaimer must be drafted in the predominant language of the advertisement, the named body.
The words “currency”, “securities”, “custodian” and “custodians” may not be
used in advertisements of virtual digital asset products or services, as consumers associate these terms with regulated products, it added.
No advertisement should show that VDA products or digital asset trading can solve money problems, personality problems or other similar drawbacks. Nothing in the ad should downplay the category’s risks.
Any advertisement for VDA products must clearly state the advertiser’s name and provide an easy way to contact them (phone number or email). No ad should contain any statements that promise or guarantee the future
increase in profits, according to the ASCI.
“Since this is a high-risk category, celebrities or prominent personalities appearing in VDA ads should take special care that they have done their due diligence regarding the statements and claims in the ad, so as not to mislead consumers,” the statement said. advertisement. body added.
The guidelines apply to all ads released or published on or after April 1. All past ads must include new guidelines and disclaimers after April 15.
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