The Securities and Exchange Board of India (SEBI) has suggested that no prominent public figures, including celebrities and sports personalities, should endorse crypto products, according to local media reports.
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- Trading cryptocurrencies is not illegal in India, but the activity is not regulated in the country and is categorized as virtual digital assets for tax purposes only.
- The securities and commodities market regulator added that crypto-related advertisements must disclose how crypto dealings could be in violation of local regulations.
- SEBI suggested rewording the local advertising council’s disclaimer to include: “Dealings in crypto products may lead to prosecution for possible violation of Indian laws such as FEMA, BUDS Act, PMLA, etc,” according to anonymous SEBI sources quoted by local media.
- Such disclaimers are already in place for alternative investment channels such as stocks and mutual funds brokerages.
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