The Securities and Exchange Board of India (SEBI), the Indian stock market regulator, and Advertising Standards Council of India, the advertisements regulatory body, has stated that public figures, such as celebrities and athletes, should not advertise crypto assets because of their unregularly nature.
According to the markets regulator and the advertisements regulator, organisations that advertise cryptocurrencies and digital assets must also disclose potential legal infractions to such celebrities before onboarding them.
In February, the Advertising Standards Council of India (ASCI) released guidelines for crypto advertising. The guidelines demanded that the celebrity endorsers of crypto products do the proper due diligence on the product before advertising them.
The guidelines also asked for all crypto product advertisements to contain the following. The disclaimer read as, "Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions."
The ASCI guidelines also demanded that the disclaimer be prominently visible in the advertisement.
The impact of these guidelines was visible in the recent IPL season with no crypto exchange advertising their platforms during the matches.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today