The Advertising Standards Council of India (ASCI), a self-regulatory industry body that sets advertising standards in India.
They has announced new crypto-related advertising laws that will take effect in April.
According to the new rules, crypto exchanges and other businesses that advertise ‘virtual digital assets’.
It must include a disclaimer advising viewers that these assets are “extremely dangerous.”
Cryptocurrencies are considered high-risk investments
The ASCI stated that crypto product advertising has been “extremely aggressive” in recent months.
By adding that several of these ads “do not sufficiently communicate the dangers” involved with cryptocurrency investment.
“Cryptocurrencies will jeopardise the RBI’s ability to deal with financial stability challenges.”
On February 11, RBI Governor Shaktikanta Das remarked.
“I believe it is my obligation to remind investors that when they invest in cryptocurrencies, they should keep in mind that they are investing at their own risk.”
What are the new ASCI guidelines?
The disclaimer must take up at least one fifth of the advertising area at the bottom of the ad.
In an easy-to-read font, and against a simple background, according to the ASCI’s requirements.
The disclaimer must appear at the end of the video and against a plain background.
Similar to advertisements for mutual funds and insurance programmes, the voice over must also accompany the disclaimer text.
The disclaimer should be repeated at the beginning and end of every large format video that lasts more than two minutes.
The disclaimer must be visible for at least five seconds.
Advertisements on Instagram stories, audio, social media posts, and other platforms are also covered by the guidelines.
The disclaimer must appear in both words and photographs or videos in social media posts, with the disclaimer appearing first in captions.
The disclaimer should be “spoken” at the end of the storey, and short movies of less than 15 seconds must also display the disclaimer prominently.
Finally, if the advertising medium has a character limit, the disclaimer will be truncated to “crypto goods and NFTs are unregulated and dangerous,” with a link to the full disclaimer.
The disclaimer should also be included in the advertisement’s “dominant language.”
The new crypto ad laws in India are more than just a disclaimer
In addition to the disclaimer, the ASCI has prohibited the use of the terms “currency,” “security,” “custodian,” and “depositories” in crypto-related advertisements.
These commercials must also give information on the cost and profitability of virtual digital asset items, which must not contradict the disclaimer.
This means that businesses can’t just advertise ‘zero cost’ investments without also disclosing any additional expenses that the “customer could reasonably connect” with them.
The new criteria will take effect on April 1 of this year, and marketers and media owners will have until April 15 to guarantee that all previous advertising meet the new standards.