No new crypto commercials to be released
All are, however, not in agreement with the decision of the Blockchain and Crypto Asset Committee
Following concerns expressed by the government and the parliamentary panel on finance about advertising by players in the crypto space, a handful of crypto exchanges and one intermediary in India have decided not to release new commercials in print, TV or radio, according to a report.
The Blockchain and Crypto Asset Committee, an arm of the Internet and Mobile Association of India, has taken this decision at a meeting, the Economic Times reported, quoting unnamed officials
Some players prefer to wait till there is clear understanding on what is acceptable and what is not, while some other think their ads are subtle enough, the report quoted an official of a crypto exchange as saying.
Ad dilemma
Trading in cryptocurrencies have attracted millennials in good numbers. Investors can trade 24 hours in cryptocurrencies, making it particularly attractive to young investors .
The report quotes the founder of an exchange as saying that the advertising rules applicable for other financial assets can be replicated for crypto, including staying away from celebrity endorsements.
While banks are free to hire movie stars and cricketers to endorse the organisations, mutual funds and stock brokerages avoid it, the report noted.
Some argue that advertising in some form would have to happen as cryptocurrency is a new product and is considered a digital asset.
Exchanges and platforms are the advertisers in the crypto space as there is no intermediary.
Ramesh Kailasam, CEO of Indiatech.org, is quoted in the report as saying that the industry should move towards educative advertising under a code prescribed by the Advertising Standard Council of India
It was earlier reported that the Centre may nudge the Advertising Standards Council of India (ASCI) to push for greater disclosures and stricter statutory warnings on commercials on virtual currencies and their trading platforms.