After receiving a proposal from the Securities and Exchange Board of India (SEBI) to ban prominent figures from promoting crypto products, the Advertising Standards Council of India (ASIC) said that it is not amending its laws regarding the asset class, The Economic Times reported.
ASIC Will Not Change Its Crypto Advertisement Laws
Earlier this year, ASIC rolled out guidelines on virtual digital assets (VDA) such as cryptocurrencies, stating that any advertisement in the category should not include the words “currency,” “securities,” “custodian,” and “depositories.”
Due to the unregulated nature of crypto assets in the country, ASIC mandated companies featuring ads on cryptocurrencies to attach a disclaimer on the products, which reads:
“Crypto products and (non-fungible tokens) are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
SEBI wants ASIC to adjust its crypto advertising laws to prohibit public figures, including celebrities, from promoting crypto-related products. Specifically, SEBI proposed that ASIC should amend its law to include that “dealings in crypto products may lead to prosecution for possible violation of the outlined laws above.”
The capital market regulator noted that some cryptocurrencies go against the country’s financial policies and shouldn’t be used in any form of advertisement.
However, ASIC has declined the request, stating it has no plans to change its rules and guidelines regarding the promotion of digital assets.
Industry Divided Over SEBI’s Proposal
The Economic Times reported that SEBI’s proposal to restrict Indian celebrities and sportsmen from endorsing crypto products has spurred controversy within the crypto industry.
Some of the industry players believe that investment decisions are not influenced by prominent figures while others think that authorities should not hurry to implement additional rules due to the fact that the country already placed stringent rules on digital assets.
Vikram Subburaj, CEO of crypto exchange Giottus, noted that it might not be wise for these agencies to roll out more guidelines as the government is already working on properly regulating the asset class.
“This would just undermine the work of the regulators. A holistic approach to the industry, guided by regulations, will be the best way forward for both the consumers and the industry,” he said.
Sathvik Vishwanath, Co-Founder & CEO of Unocoin, disagrees with Subburaj’s opinion. The Unocoin CEO supports the SEBI’s idea to ban celebrities from promoting crypto products as common men are easily influenced by these stars.
Source: https://coinfomania.com/asic-rejects-ban-celebrities-promoting-crypto/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=asic-rejects-ban-celebrities-promoting-crypto