India’s top securities and commodity market regulator, SEBI has proposed some guidelines regarding the endorsement of crypto products. In fact, celebrities and sportsperson should not endorse any crypto products.
SEBI shared its view on the subject with India’s parliamentary Standing Committee on Finance. They shared their view in response to the question regarding various crypto issues.
The Indian Ministry of Finance had asked SEBI for their view regarding the crypto advertising guidelines. In fact, the Advertising Standards Council of India (ASCI) had taken some inputs from SEBI for the crypto advertising guidelines.
“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.”
SEBI has also stated that those public figures who endorse crypto products could face action due to violation of laws such as the Consumer Protection Act.
Alongside this, SEBI suggested an addition to the current ASCI disclaimer:
“Dealings in crypto products may lead to prosecution for possible violation of Indian laws such as FEMA, BUDS Act, PMLA, etc.”
ASCI had pushed these crypto advertising guidelines from April 1st. According to these guidelines, digital assets are a risky category, and indulging in such could lead to prosecution under law. In their words:
“Since this is a risky category, celebrities or prominent personalities who appear in such advertisements must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers.”
While all this is going on, the Indian government is steadily working on developing the country’s crypto policy.