ASCI in talks with Center to update crypto advertising guidelines

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New Delhi: The Advertising Standards Council of India (ASCI) is in talks with the government to update the cryptocurrency advertising guidelines to include adequate risk disclosure, ensuring consumers do not confuse crypto products with legal tender and are not misled. by exaggerated claims or by unfair comparisons with regulated asset classes, said ASCI General Secretary Manisha Kapoor.

Finance Minister Nirmala Sitharaman told parliament on Tuesday that the government is reviewing ASCI’s guidelines on deceptive advertising so it can take a stand on complaints about deceptive crypto ads.

ASCI is in “active discussions with the government and other experts” on the crypto guidelines and seeks “to resolve issues that concern the best interests of consumers,” Kapoor told ET.

As such, ASCI’s existing code already requires that all advertisements “be honest and do not exploit consumers’ lack of experience or knowledge”, and this applies to advertisements in all categories, including crypto products, she said.

Amid the controversy over the lack of regulation and a possible regulatory crackdown on the industry, cryptocurrency exchanges such as CoinSwitch Kuber, WazirX and Bitbns have suspended advertising. Over the past several months, including during the T20 World Cup, cryptocurrency exchanges had spent around Rs 50 crore on advertising on mainstream and social media channels. While Amitabh Bachchan and Ayushmann Khurrana had signed up as CoinDCX brand ambassadors, Ranveer Singh endorsed CoinSwitchKuber.

ASCI is a self-regulatory authority for advertising in the country, and although its guidelines are not legally enforceable, all violations of entity guidelines are considered (by ASCI) to be a violation of the rules of the government. The council works closely with the Department of Consumer Affairs, the Food Safety and Standards Authority of India (Fssai) and the ministries of Ayush and Information and Broadcasting.

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“As crypto exchanges have suspended advertising and await clarification from the government, they are all making plans for new ads that will show mitigated claims,” said a media buying official working directly with one of the. large crypto exchanges.

“Even the celebrities associated with these brands have sought clarity. They too don’t want to risk being seen endorsing a category that is not clear, ”said another agency executive representing one of the celebrities.

Both asked not to be named.

ASCI previously noted that celebrities endorsing crypto exchanges or any product and category that do not have clarity on their products or services could be held responsible for misleading claims. The guidelines fall under the Consumer Protection Act, which came into force last year.

Both CoinDCX and CoinSwitch Kuber have raised big fundraisers this year and turned into unicorns – in other words, their valuation has surpassed $ 1 billion.

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