Advertising watchdog catches violations in crypto ads by influencers

moneycontrol.com:

Ever since the Advertising Standards Council of India (ASCI) came out with guidelines to advertise virtual digital currencies in April 2022, it has processed violations in as many as 29 advertisements. Manisha Kapoor, CEO and Secretary General, ASCI, says that these violations pertain to social media influencers not having disclosed that the posts were paid promotions by crypto companies as well as direct ads by crypto companies. Kapoor refused to divulge the names of the social media influencers who have been pulled up by ASCI because “the hearings and appeals process is still ongoing”, she adds.

ASCI’s guidelines for advertisements of virtual digital assets (including cryptocurrencies, non-fungible tokens and so on) came into effect on April 1.

Among the dos and don’ts of cryptocurrency advertisements, the guidelines detail how companies can advertise, and what they can and cannot say. For instance, the ads should clearly highlight that cryptos are “highly risky instruments” and how audio and visual advertisements must also carry disclaimers.

The guidelines also prohibit the use of words like ‘currency’, ‘securities’ ‘custodian’ and ‘depositories’. The advertisements cannot promise or guarantee any returns and no minor should be seen dealing in cryptocurrencies in the advertisements. ASCI is a self-regulatory body of the advertising industry established in 1985.

Crypto advertisements on a high

Last year— and on the back of the phenomenal rise in cryptocurrency prices —television was flooded with many commercials where Bollywood stars and celebrities were seen advertising cryptocurrencies. Many of these advertisements were seen making tall claims about how cryptos are safe, simple, the next big thing, and so on.

In reality,