WazirX, CoinDCX and CoinSwitch Kuber have been asked to add ‘standardised disclaimers’ to their ads on television

Advertisement
WazirX, CoinDCX and CoinSwitch Kuber have been asked to add ‘standardised disclaimers’ to their ads on television
CoinDCX ad which states, "Par Bitcoin liya kya?"CoinDCX/YouTube
  • WazirX, CoinDCX and CoinSwitch Kuber may have to put up bigger disclaimers on their television ads.
  • CoinDCX told Business Insider India that they remain committed to the adoption of "safe and compliant" measures "needed for mass adoption of crypto assets."
  • A notice by the Delhi High Court has asked Indian exchanges to add ‘standardised’ disclaimers to their ads in response to a plea that complained that the currency disclaimers are too small to read.
  • Others like the UK and Spain are also cracking down on crypto advertising for being ‘misleading’.
Leading Indian crypto exchanges — WazirX, CoinDCX and CoinSwitch Kuber — have been asked to add ‘standardised’ disclaimers to advertisements shown on television.

The Delhi High Court notice comes after the exchanges have been raking in sponsorship deals for bigwig events like the Euro 2020 football championships, the Indian Premier League (IPL) cricket tournament, and T20 tour between India and Sri Lanka.

While regulations, a constant demand from the industry, will cater to the advertising guidelines, adding disclaimers to all our advertisements that go on air has been a part of our self-regulatory framework. We are committed to safe and compliant measures needed for mass adoption of crypto assets and are willing to adhere to all measures that increase investor protection.

Ramalingam Subramanian, head of brand and communications at CoinDCX told Business Insider India

The bench consisting of Justices DN Patel and Jyoti Singh issued the notice in response to a plea claiming that crypto assets are volatile and pose an increased likelihood of risk as compared to other investment options, according to LiveLaw.
Advertisement

The current ads do have disclaimers but the plea points out that they are too small to read and need to be broadcasted in a standard size. Instead, advocates Aayush Shukla and Vikash Kumar — who filed the plea — have asked for the disclaimer text to cover 80% of the screen while advertising and have a slow voice reading it out.


Since the issue involves digital assets and televising standards, the notice also names the Government of India, Securities and Exchange Board of India (SEBI) and the Ministry of Information and Broadcasting (MIB) as respondents in addition to the crypto exchanges.

Advertisement



The UK advertising watchdog does not think ‘it’s time to buy’



India isn’t alone in its concerns around crypto advertising. In the UK, the country’s advertising watchdog — the Advertising Standards Authority (ASA) — is also cracking down crypto ads. IT has put cryptocurrency marketing campaigns as a ‘ red alert’ priority on its roster.

Advertisement
Earlier in May, The ASA had banned Luno’s Bitcoin ads citing them as ‘misleading’ and ‘irresponsible. Luno, which is owned by the Grayscale digital assets company, had put up ads across London’s transport network stating, “If you’re seeing Bitcoin on the Underground, it’s time to buy,” and “If you’re seeing Bitcoin on a bus, it’s time to buy.”

Spain is mulling over laws to control and supervise crypto ads



The Spanish government has proposed to put cryptocurrencies under the helm of the National Securities Market Commission ( CNMV). The circular, currently in the public space for comments, would give the financial regulator the power to insist on the disclaimer, request changes, and suspend them altogether if they’re non-compliant. The circular is set to come into force on 31 August 2021, if there are no objections.

Advertisement
In addition to regulating crypto ads, the Indian government is also mulling over regulations to address the crypto industry as a whole. The country’s crypto bill was hyped to be scheduled during the Budget Session of Parliament in March and then again during the upcoming Monsoon Session — but it seems unlikely.

For a more in-depth discussion, come on over to Business Insider Cryptosphere — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve.

SEE ALSO:
Binance’s compliance ‘journey’ gets bumpier as another partner backs out

A single Bitcoin transaction has a bigger carbon footprint than 100,000 hours of YouTube videos — here’s how the crypto industry wants to fix that

South Korean banks are creating custody companies to deal with cryptocurrencies — without having to touch the asset itself
{{}}