Indian High Court Seeks Crypto Exchanges Disclaimer

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Amid the current regulatory uncertainty surrounding cryptocurrencies in India, a high court in the nation’s capital is taking action to regulate advertising by local crypto exchanges.

The Delhi High Court has issued notices to local authorities and crypto firms in an attempt to enforce guidelines for advertising on crypto exchanges on national television, the New Indian Express reported on Wednesday.

The court is seeking responses from the Securities and Exchange Board of India (SEBI), the Ministry of Information and Broadcasting, as well as major Indian crypto exchanges, including CoinDCX and WasirX, and aims to discuss the matter in August.

Lawyers Ayush Shukla and Vikash Kumar urged the court to ask SEBI to issue advertising guidelines requiring crypto AV ads to include a warning covering 80% of the screen, accompanied by voiceover reading, according to the report. at least five seconds. .

The petitioners are said to have said that many crypto ads on national television did not include a voiceover, while the warning text is displayed briefly and in lowercase, usually containing a line such as cryptocurrency is currency. digital unregulated, not a legal tender and subject to market risks. .

Related: Crypto Exchanges In India Still Struggle To Secure Banking Partners

The court plea is said to have said that crypto assets are inherently riskier than traditional equity investment products, mutual funds and other investment vehicles, thus requiring more measures to ensure investor protection. An ordinary retail investor who views audiovisual advertising on television and online sites like Youtube, can suffer immense losses, while, on the other hand, the court noted.

The news comes as India continues to struggle to craft clear regulations for the crypto industry in the country as alleged anonymous government sources continue to fuel fears of an upcoming crypto ban. Despite the current regulatory uncertainty, India’s investment in crypto has reportedly increased 600% over the past year.

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