New Regulations for Crypto Ads from April 1.

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New Regulations for Crypto Ads from April 1.
24 Feb 2022
6 min read

News Synopsis

The Advertising Standards Council of India (ASCI) has announced some new regulations for Crypto Ads broadcasting on Television. These regulations will come into effect from April 1. ASCI is a self-regulatory body that sets standards and regulations for advertisement in India. After the implementation of new regulations, crypto companies running ads now have to put a disclaimer that should convey that transactions of these ‘virtual digital assets’ are “highly risky”. ASCI said that crypto ads are extensively running on television and many of these “do not adequately disclose the risks” associated with the investment in cryptocurrency. Shaktikanta Das, RBI Governor on February 11, said: “They [cryptocurrencies] will undermine RBI’s ability to deal with issues related to financial stability. I think it is my duty to tell investors that when they are investing in cryptocurrencies, they should keep in mind that they are investing at their own risk.” After the declaration of new regulations on crypto ads, Subhash Kamath, Chairman of ASCI said: "We had several rounds of discussion with the government, finance sector regulators, and industry stakeholders before framing these guidelines. Advertising of virtual digital assets and services needs specific guidance, considering that this is a new and as yet an emerging way of investing. Hence, there is a need to make consumers aware of the risks and ask them to proceed with caution.”

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