SEBI proposes banning celebrity promotion of cryptos

moneycontrol.com:

The Securities & Exchange Board of India (SEBI) has recommended that no 'prominent public figures, including celebrities and sportsmen,' should endorse crypto products. The market regulator proposed that companies advertising cryptos and digital assets should also put up disclosures listing out possible law violations.

Last month, SEBI clarified its position on the subject with India’s Parliamentary Standing Committee on Finance when members put forth questions on various aspects of crypto. As a result, the market regulator submitted a detailed written response to the Parliamentary Panel.

The Advertising Standards Council of India (ASCI) had published crypto advertising guidelines in February and the Finance Ministry had urged the SEBI to share its stance on such ads.

In response, the SEBI reportedly said that, "Given that crypto products are unregulated, prominent public figures including celebrities, sportsmen, etc. or their voice shall not be used for endorsement/advertisement of crypto products."

The market regulator further added that prominent public figures should be held responsible for making such endorsements which is a possible violation of the Consumer Protection Act or any other law.

As per the ASCI guidelines, all ads must carry a disclaimer saying, "Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions." Such a disclaimer must be made in the following manner so that it is prominent and unmissable by an average consumer, the advertising watchdog has said.

SEBI suggested that the given disclaimer by the ASCI must add the possible law violations in crypto transactions. "Dealings in crypto products may lead to prosecution for