WazirX, CoinDCX, and other Indian crypto exchanges reportedly have new advertising guidelines in the next seven to ten days

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India’s crypto lobby, the Blockchain and Crypto Assets Council (BCAC), is proposing new rules to determine how crypto exchanges can advertise on TV and online platforms. The new rules would be in place within the next seven to ten days. The advertising guidelines will be part of the self-regulatory code currently under development. The next seven to ten days will determine how India’s nascent crypto industry presents itself to the masses. The Blockchain and Crypto Assets Council (BCAC) is set to introduce a new set of guidelines to determine how crypto exchanges in the country can advertise on TV as well as online platforms like Netflix, Amazon Prime. , Disney + Hostar and others.

The move comes after crypto exchanges in India – which include WazirX, CoinSwitch Kuber and CoinDCX – put the pedal to the metal when it comes to advertising in the country. But, that seems to have put them in hot water with regulators for not warning enough of the pitfalls of investing in cryptocurrencies.

Navin Surya, who sits on the Crypto Council’s advisory board, told the Economic Times (ET) that the advertising guidelines would be part of the self-regulatory framework that is already underway. What’s wrong with crypto ads in India?

There was a time when most people in India weren’t interested in cryptocurrencies. But the past three years – especially the year of the pandemic – have been critical in changing that perception.

Meanwhile, crypto exchanges in India have also done their part to boost business. They have entered into sponsorship deals for major events such as the Euro 2020 soccer championships, the Indian Premier League (IPL) cricket tournament and the T20 India-Sri Lanka tour.

Publicity

But more visibility also means more criticism. A plea filed by lawyers Aayush Shukla and Vikash Kumar in the Delhi High Court argues that these new announcements do not give enough warning to investors about the risks involved when investing in cryptocurrencies. According to them, the text of the warning should cover 80% of the screen.

Trying to stay one step ahead of official reprimands

Just as over-the-top (OTT) platforms have tried to stay ahead of regulation in India with their self-regulatory code, crypto exchanges also bide their time until the industry matures. .

After the Delhi High Court’s opinion, the Advertising Standards Council of India (ASCI) said it could introduce guidelines, with crypto ads becoming “a new area of ​​concern.”

ASCI guidelines are not legally binding. However, violation of ASCI guidelines is considered a violation of government rules.

Cryptocurrency Ads In India Already Have Disclaimers – But There Is No “One Size Fits” The Problem Is Not That These New Crypto Ads Don’t Have Disclaimers responsibility – they have it. However, each crypto exchange has proceeded in its own way. WazirX ads have a warning that appears throughout the ad, but in a small font in the corner of the screen. With CoinDCX and CoinSwitch Kuber ads, it appears right at the end. In both cases, the font size is different.

The Delhi High Court demanded that there be a “standardized” approach. The warning – what it says, how it appears, screen space required, and how long – should be the same for all businesses involved. Not only does this level the playing field, investors are also aware of the format and understand that there is risk in the crypto markets.

For a more in-depth discussion, head over to Business Insider Cryptosphere – a forum where users can delve into all things crypto, engage in interesting discussions, and stay ahead of the curve.

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