ASCI issues guidelines for promotion and advertisement of crypto, NFTs

economictimes.indiatimes.com:

Mumbai: The advertising industry’s self-governing body has put out guidelines for the promotion and advertisement of crypto and non-fungible tokens (NFTs), amid growing concerns over their sustained targeting of retail investors. The Advertising Standards Council of India (ASCI) said on Wednesday that all virtual digital asset (VDA) products and services should carry the disclaimer: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” It further said such disclaimers should be prominent and unmissable to an average consumer. ASCI also specified how the disclaimer should look in the print, video, and audio format as well as social media posts and stories.

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Other guidelines include prohibiting the use of words like currency, securities, custodian, and depositories in such advertisements. ASCI also said advertisements providing information on the cost or profitability of products should be made clear, along with providing accurate and sufficient information, and an easy way for the consumer to contact the advertiser. The 12-point guideline also said that advertisements should not promise or guarantee profits, and should not compare VDA products with a regulated asset class, or depict minors in the ads. The guidelines will apply to all advertisements published after April 1. “We had several rounds of discussion with the government, finance sector regulators, and industry stakeholders before framing these guidelines,” said Subhash Kamath, chairman,