New Crypto Ad Rules: ASCI Releases Guidelines For Digital Assets Promotion, Read Full Detail Here

The Advertising Standards Council of India (ASCI) has introduced a set of 12 guidelines for the advertisement and promotion of virtual digital assets (VDAs) and services such as cryptos and non-fungible assets, almost three months after Prime Minister Narendra Modi slammed “misleading ads” in the cryptocurrency space in November 2021. (NFTs).

As a result, cryptocurrency companies will be required to include disclaimers in their ads, much as other industries, like as mutual funds, do. The goal is to protect consumer interests and guarantee that advertisements do not mislead or abuse customers’ lack of knowledge about these items, according to an ASCI press release.

These rules shall apply to all advertising that are released or published on or after April 1, 2022.

Here are some of the key points mentioned by ASCI in the guidelines.

According to the standards, all advertisements for VDAs must include the following disclaimer: “Crypto products and NFTs are unregulated and can be exceedingly dangerous.” There may be no regulatory remedy for any losses incurred as a result of such transactions.”

Print ads: In print or static ads, the disclaimer must take up at least one-fifth of the advertising area at the bottom of the advertisement, in an easy-to-read typeface, against a simple background, and in the largest font size that the space allows.

Video ads: The disclaimer must be presented at the end of the advertising against a simple background, and the voiceover must follow the text disclaimer. Furthermore, the voiceover must be delivered at a normal speaking rate and must not be rushed. In the case of extended format video lasting more than two minutes, the aforementioned disclaimer should be repeated at the beginning and end of the video. The disclaimer must remain on screen for at least five seconds.

Audio ads: The disclaimer must be delivered at the end of the advertising, and the voiceover must be at a normal speaking rate and not hurried. According to ASCI, in the case of long format audio lasting more than 90 seconds, the disclaimer shall be repeated at the beginning and end of the recording.

Posts on Social Media: Social media has evolved as one of the most important channels for advertising, particularly for VDAs. The disclaimer should appear in both the caption and any image or video assets in social media posts. In addition, the disclaimer within the caption must be posted at the top of the post. If any social media postings or adverts have text limits in the static image, the disclaimer must be in the caption before the fold.

For fading stories or posts that aren’t accompanied by text, the disclaimer must be stated at the end of the narrative in the same way as it is for other forms. According to ASCI guidelines, if the video is shorter than 15 seconds long, the disclaimer may be provided in a prominent and obvious manner as an overlay.

Emphasis on Precision

The new law also said that advertisements must not contradict the information or warnings that the regulated organisations provide to customers when promoting VDA products on a regular basis.

Furthermore, advertisements that provide information on the cost or profitability of VDA products must be clear, precise, sufficient, and up to date, according to the ASCI statement.

“Information on prior performance shall not be supplied in any way that is incomplete or biassed.” “Returns for periods less than 12 months shall not be included,” according to the statement.

Furthermore, any advertisement for VDA products must explicitly state the advertiser’s identity and provide an easy means to contact them (through a phone number or email). According to the ASCI announcement, “this information should be presented in a manner that is clearly comprehended by the ordinary consumer.”

Other Requirements

Avoid Comparisons With Regulated Assets: According to the ASCI rules, businesses should avoid comparing cryptocurrencies to regulated goods or asset classes that guarantee earnings.

Importantly, the new ASCI recommendations indicate that the terms “money,” “securities,” “custodian,” and “deposits” should not be used in ads for VDA goods or services since consumers link these terms with regulated products.

Celebrities Must Be Aware: According to the guidelines, some celebrities have been seen participating in the ads for these virtual assets, and they must be aware of this.

“Because this is a dangerous category, celebrities or prominent people who feature in VDA commercials must take great care to ensure that they have done their due research on the statements and claims made in the advertisement, so as not to mislead customers,” the guidelines stated.

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