Cryptocurrency commercials: Guidelines soon
Cryptocurrency trading platforms such as WazirX, CoinDCX, and CoinSwitch Kuber will come under the ambit of the proposed guidelines
The Indian cryptocurrency industry is in the middle of an advertising overhaul even as the regulatory framework for cryptocurrencies is yet to be drafted in India. The absence of customer protection measures is another area of concern for the sector. A set of guidelines pertaining to the advertising of cryptocurrency exchanges will be published in the next 10 days, according to a report in The Economic Times. They will be introduced by the Blockchain and Crypto Assets Council (BACC), which is a part of the Internet and Mobile Association of India.
Standardised disclaimer
Cryptocurrency trading platforms such as WazirX, CoinDCX, and CoinSwitch Kuber will come under the ambit of the proposed guidelines. The advertisements both on OTTs and TV will carry a standardised disclaimer. The disclaimer will include directives on the things that are to be done and things to be avoided.
Navin Surya, Chairman of Fintech Convergence Council, said all issues, be it around advertisement or maintaining standards of governance, fall under the ambit of customer protection. Surya, also an advisory board member at BACC, added they are trying their best to mitigate the risk.
WazirX CEO Nischal Shetty, said the disclaimer might include words like ‘volatility’. Currently, WazirX is India’s largest cryptocurrency exchange and has over 70 lakh users.
The formal guidelines may also specify for how long the disclaimer will be shown. Shetty said the committee is yet to take a call on whether the advertisements will include voice-overs akin to the ones seen on mutual fund advertisements.
PIL in Delhi High Court
A few weeks ago, public interest litigation (PIL) was filed against WazirX, CoinDCX and CoinSwitch Kuber in the Delhi High Court. The PIL sought the court’s intervention to direct the Securities and Exchange Board of India to formulate guidelines and take action against television advertisements that run sans sufficient standard disclaimers and voice-overs.
The three respondents in the case clarified that all disclaimers for television advertisements are already in place.
The Advertising Standards Council of India had earlier said that cryptocurrency exchanges are an emerging area of concern.
Top cryptocurrency exchanges in India are already collaborating with BACC with the aim of setting up a board of advisors for the implementation of the code of conduct for the industry.