ASCI frames guidelines for crypto, NFT-related advertising, promotion

business-standard.com:

“Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” The Advertising Standards Council of India (ASCI) wants this disclaimer prominently displayed on ads and promotions related to virtual digital assets (VDAs) like cryptos or non-fungible tokens (NFT).

Noting that several advertisements for virtual digital assets do not adequately disclose the risks associated with them, ASCI has framed guidelines for such advertising. The guidelines will be applicable to all virtual digital asset-related ads released on or after April 1, 2022.

According to ASCI, all advertising for virtual digital assets and services needs to follow the following guidelines: All ads for VDA products and VDA exchanges, or featuring VDAs, must carry the disclaimer that crypto products and NFTs are unregulated and can be highly risky, and that there may be no regulatory recourse for any loss incurred from transactions involving them.

Such a disclaimer, says ASCI, must be made in the following manner so that it is prominent and unmissable by an average consumer:

(a) In print or static, equal to at least one-fifth of the advertising space at the bottom of the advertisement in an easy-to-read font, against a plain background, and to the maximum font size afforded by the space.

(b) In video, the disclaimer should be placed at the end of the advertisement against a plain background. A voiceover must accompany the disclaimer in text. The voiceover should be at a normal speaking pace and must not be hurried. In the case of long format video of over two minutes, the disclaimer should be repeated at the beginning and at the end of the video. The disclaimer must remain on