- The recommendations apply to all marketing relating to virtual digital assets (VDA).
- The standards outline how the disclaimer should be designed.
The Advertising Standards Council of India (ASCI) announced rules for advertising and promoting virtual digital assets and services on Wednesday. The recommendations apply to all marketing relating to virtual digital assets (VDA), which are “commonly referred to as crypto or NFT [non-fungible token] products,” according to the Advertising Standards Council of India. First and foremost, all crypto-related advertisements must include a disclaimer.
The disclaimer to be mentioned is:
“Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
Disclaimer Considering Average Consumer
According to India’s advertising authorities, the standards outline how the disclaimer should be designed to ensure that “it is prominent and unmissable by an average consumer.”
The guidelines also mention the following:
“The words’ currency,’ ‘securities,’ ‘custodian,’ and ‘depositories’ may not be used in advertisements of VDA products or services as consumers associate these terms with regulated products.”
In addition, advertisements may not include a juvenile or a person who looks to be minor in any way. Promotions may not claim that they are a solution to financial or other issues, nor may they promise a specific rise in earnings in the future. The advertising watchdog said that advertisements should not minimize the dangers connected with the asset class and that “VDA products may not be compared to any other asset class which is regulated.”
A celebrity endorsement is also addressed in the standards, as is the necessity for the celebrities to ensure that the remarks they make in the advertising are understood by them and do not mislead the consumer.
