Cryptocurrency exchanges India I Ads run by cryptocurrency exchanges under scanner; ASCI formulates guidelines

Ads executed by cryptocurrency exchanges under the scanner; ASCI formulates guidelines | Photo credit: Thinkstock

The unregulated cryptocurrency industry in India is increasingly moving on the authorities’ radar for compliance and tax issues. The Advertising Standards Council of India (ASCI) could soon issue guidelines for exchanging cryptocurrencies after marking it as an “area of ​​concern”.

The development comes within days after the income tax department asked for trading details from all of the country’s cryptocurrency exchanges.

Manisha Kapoor, general secretary of the advertising industry’s self-regulatory body, said, “ASCI is considering additional and new guidelines needed to protect consumer interests through consultation with various stakeholders,” according to the Economic Times report.

The ASCI guidelines are part of communications from the Department of Consumer Affairs, Food Safety Standards Authority of India (FSSAI), AYUSH, and Ministries of Information & Broadcasting (I&B). These guidelines are not legally enforceable, but violations will be treated as regulatory requirements.

Kapoor added that ASCI’s existing guidelines require that advertisers not mislead or give false information or exploit a lack of consumer expertise on the matter, but new guidelines are being formulated.

The development comes after the Delhi High Court issued notices to the Securities and Exchange Board of India (SEBI) and the I&B Ministry in response to a plea to compel cryptocurrency exchanges to advertise without using standard disclaimers that otherwise exist for most financial products are required.

WazirX, CoinSwitch Kuber, ZebPay and CoinDCX are some of the exchanges that allow trading digital currencies like Bitcoin, Ethereum, Polygon, etc.

IT previously requested trading details from all crypto exchanges in India in order to tax the profits made during the bull run. The tax department sent notices to three exchanges inquiring about all ledger entries, looking for the price, time, and number of digital coins sold by the exchanges.

It is not the first time that stock exchanges have been asked for such information by the tax authorities. Similar notices were sent out in early 2017 when Bitcoin hit an all-time high.

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