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Celebrities should do due assiduity regarding claims in crypto ads: ASCI

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Celebrities should do due assiduity regarding claims in crypto ads: ASCI

  • Recently the Advertising Standards Council of India (ASCI) has said that the claims made in crypto advertisements should be properly investigated by celebrities.
  • Recently the Securities and Regulatory Board of India (SEBI) had suggested celebrities in public life not to support Virtual Digital Asset (VDA).
  • Following this, ASCI has reiterated its advice to celebrities to properly investigate crypto ads.
  • VDA is defined as any information or code or number or token generated by cryptographic means or other means that can be transferred, stored or traded electronically.
  • This includes non-fungible tokens (NFTs), crypto and other virtual assets.

Regulation of Advertisement related to VDA-

  • Under the Consumer Protection Act, 2019, a provision of punishment has been made for those who promote misleading advertisements. Plus, it’s punishable even if they haven’t researched the ad before.
  • ASCI issued guidelines for promotion and advertising of crypto and non-fungible tokens in February 2022.
  • The disclaimer regarding crypto products and NFIS is mandatory in all VDA products and services.

Advertising Standards Council of India (ASCI) –

  • Advertising Standards Council of India (ASCI) is a voluntary self-regulatory organization. It was established in the year 1985. It aims to protect the interests of Indian consumers through self-regulation in advertising.
  • It issues a legally non-binding Advertising Code and Guidelines.
  • In case of infringement by a celebrity/advertising company, ASCI may publish their cases or may refer such cases to the relevant Government Regulator.
  • The Cable Television Networks (Amendment) Rules, 2006 makes it mandatory for all advertisements carried by cable services to conform to the ASCI Code.

Concerns related to Virtual Digital Assets (VDA)-

VDAs are highly risky assets. They remain largely unregulated. This does not provide any help from the regulator in case of any loss in the transaction.

Other concerns-

  • These can destabilize the financial system.
  • These are against the sovereign interests of the country, may reduce the impact of RBI’s monetary policy, and there is a possibility of dollarization of a part of the Indian economy.
  • Dollarization refers to the use of the US dollar in addition to or in place of the country’s domestic currency.
  • Despite these concerns, VDA has been successful in attracting people. This is because of the increase in celebrity ads targeting younger consumers, which also have no disclosures.

Source – The Hindu

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