The Advertising Standards Council of India (ASCI) has stated that no changes to crypto advertising guidelines are currently being discussed. In doing so, it has clarified its position as a key stakeholder on a proposed ban on Indian celebrities endorsing crypto products.
The Securities and Exchange Board of India (SEBI) had proposed that no prominent public figures, including celebrities and athletes, should endorse crypto products and that an advertisement should also discuss possible violations of the law, according to a report by The Hindu Business Line.
SEBI has submitted a written report on its views to the parliamentary standing committee on finance, the report said.
Manisha Kapoor, executive director and secretary general of the Advertising Standards Council of India (ASCI), said this appears to be SEBI's view in ongoing discussions within the government.
"ASCI has a specific policy for celebrities. Besides, there is also a clause in the crypto guidelines. We have always pointed out that celebrities need to do due diligence on the claims they promote. And the Consumer Protection Act also provides penalties for advertisers if the ads they appear in are misleading and they have not done due diligence. Even if advertisers don't have expertise, they must do their due diligence as part of their responsibility," Kapoor said.
ASCI's influence
ASCI does not have the authority to ban celebrities from advertising products. That authority rests solely with the government. However, ASCI guidelines are considered a blueprint for protecting the interests of Indian consumers in the interest of self-regulation in advertising.
"ASCI must urge caution on celebrities. Since a ban is not in our preview, ASCI cannot take a stand and has not done so," Kapoor said.
While the government is looking into the possibility of a ban, it may not be realistic and could potentially be challenged, a source familiar with the matter told CoinDesk.
In late 2021, Indian Prime Minister Narendra Modi chaired a meeting to discuss the regulatory outlook for cryptocurrencies. At that meeting, a strong consensus was reportedly reached to "stop attempts to mislead the youth through excessive promises and non-transparent advertising."
ASCI then released new guidelines on Feb. 23, 2022, which became effective April 1, 2022, after discussions with various stakeholders.
Under India's Consumer Protection Act, celebrities can be fined up to 10 lakhs (approximately $13,000) for a false or misleading advertisement in the first case and up to 50 lakhs (approximately $65,000) in the second.