The Indian regulator, Securities and Exchange Board of India (SEBI) has expressed its view that celebrities shouldn’t endorse cryptocurrencies. According to a report, SEBI has said that “no prominent public figures, including celebrities, sportsmen” should promote cryptocurrencies to the general public.
Other than that, SEBI also said that advertising disclosures must discuss a possible violation of laws when addressing cryptocurrencies. This already remains applicable for stocks and mutual funds brokerage firms.
So, it still remains to be seen how the newest SEBI call affects crypto advertisements in India.
Last November, amid a flood of cryptocurrency advertisements featuring celebrities, PM Narendra Modi presided over a conference at which it was strongly suggested that attempts to deceive the population through over-promising and non-transparent advertising be prevented.
The SEBI members were tested on their knowledge of cryptocurrencies at a speech before the Parliamentary Committee on Finance last month, and subsequently the opinion against celebrity crypto endorsements was communicated. SEBI is now suspected of having written a detailed response.
Moreover, SEBI has also been asked by the Ministry of Finance to supply its views on advertisements and forwarded guidelines by the Advertising Standards Council of India (ASCI).
In India, cryptocurrencies are still unregulated and are dubbed as virtual digital assets (VDA) for taxation purposes.
Also Read: ASCI Issues Guidelines For Crypto Ads and Promotion in India
This measure hints that India may eventually ban celebrity crypto ads, the SEBI suggestions don’t come as an entire shock. According to Sathvik Vishwanath, the CEO and Co-Founder of crypto exchange Unocoin, the identical was already true for stock and mutual funds brokerage firms.
“As we are managing money and returns directly, it’s important that a standard man doesn’t get influenced by celebrities,” Vishwanath said.
SEBI suggested rewording of disclaimer given by ASCI by saying “dealings in crypto products may lead to prosecution for possible violation of Indian laws such as FEMA, BUDS Act, PMLA, etc” after speaking about risk and no legal recourse available for fraud.
Subscribe to The Crypto Times for more crypto market news!!
