The Advertising Standards Council of India (ASCI) outlines specific rules for all advertising of virtual digital assets, including cryptocurrency and NFTs, starting April 1, 2022. These rules are primarily intended to protect customers from misleading advertisements.
ASCI drew up the guidelines after detailed negotiations with all stakeholders.
The Advertising Standards Council of India (ASCI) is a voluntary, non-statutory, self-regulatory organization which was founded in 1985. It started out as the Advertising Standards Committee and was renamed to ASCI in 2004.
ASCI is responsible for regulating the content of advertisements on TV, radio, print media, outdoor media, internet and other digital media. ASCI also has a code of ethics for advertisement which it publishes from time to time.
According to the Advertising Standards Council of India, crypto-asset advertisements must state clearly, “Crypto products and NFTs are unregulated and extremely risky.” The regulatory system is not responsible for damages caused by such trades.
Additionally, ASCI recommends that VDAs (Virtual Digital Assets) should not use terms such as depositories, currency, custodians, and security in advertisements because they are associated with regulated services.
Companies will not be allowed to reveal information about their past performance in a misleading or deceptive way. In addition, any future profit promises or guarantees will not be included in the advertisement.
ASCI also stated that advertisements that provide information on the cost or profitability of items should be made clear and provide accurate and valid information and a simple manner for consumers to contact the advertiser.