India’s Crypto Ad Guidelines: Crypto Stakeholders Want Separate Rules For NFT Ads

India’s Crypto Ad Guidelines: Crypto Stakeholders Want Separate Rules For NFT Ads

SUMMARY

When it comes to ad guidelines, NFTs are like IPs and should not be clubbed with crypto, said Rameesh Kailasam, CEO, IndiaTech

The guidelines are a welcome step towards the crypto regulation, however it needs to be tweaked in longer run, believe crypto industry stakeholders

There is no need to put the disclaimer at the beginning as well as at the end of the audio ads, this is discouraging, said some of the stakeholders

First the taxation, and now crypto guidelines, the Indian government has been circumventing crypto regulations while keeping a tab on their transactions and growing influence in check.“Indian crypto entities spend hardly a penny in comparison to what the global entities do. For instance, take a look at FTX exchange, Crypto.com, they have signed numerous deals with multiple brands with each worth $200 Mn, $100 Mn and so on. Indian entities are nowhere close to these advertisements and promotional deals,” says Sidharth Sogani, founder and CEO of crypto research firm CREBACO.“Also, the buyers of NFT don’t buy it because there are instant gains, they do it because they find affinity to Amitabh Bachchan or Stan Lee or they find games like racing interesting and want to participate in it. Crypto is purely a trade asset, for investments and hence, it needs very aggressive education to ensure that the expectations of returns for the buyers are not skewed by hype and unrealistic aspirations,” said Patel.On NFT ad-related affairs, CEO Rameesh Kailasam said, “Definitely, there’s a fundamental distinction. The NFTs are more like IPs, unlike cryptos that are perceived as financial assets. This very distinction has to be drawn.”“No advertisement may show that VDA (Virtual Digital  products) or VDA trading could be a solution to money problems, personality problems or other such drawbacks.”“What is the meaning of floating an ad, if we can’t even show that why are we showing this?,” he asked.“Disclaimers should be run twice in promotional podcasts that are run for 10 minutes or so,” one of the two founders opined.

Seconding that ‘it’s just the beginning of a major reform’, the crypto industry has, by and large, welcomed the Advertising Standards Council of India’s (ASCI) ad guidelines while seeking a few changes before April 1, 2022, when the ad guidelines will come into effect.

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