All cryptocurrency ads in India will carry standard disclaimers to warn investors of risks associated with crypto beginning April 1, as per guidelines released by the Advertising Standards Council of India (ASCI) on Wednesday.
See related article: Indian court seeks standardized disclaimers on crypto ads
- The disclaimer must read: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
- The self-governing body issued the guidelines after the Delhi high court asked government agencies and crypto exchanges to form a standard disclaimer for crypto ads last July.
- Even after India announced a 30% tax on cryptocurrency income, digital assets are not considered legal and remain unregulated.
- The new guidelines also state that crypto ads cannot contain the words “currency,” “securities,” “custodian,” and “depositories,” as these words are associated with regulated products.
- Advertisers cannot use minors for digital asset ads nor portray crypto trading to solve financial problems and are also required to display their contact information.
See related article: India’s 1st parliamentary meeting on crypto ends with consensus on regulation — and no ban