Advertising for digital currencies in India must include a standardized disclaimer warning investors about the risks in the industry. A supreme court in the Asian country has received a petition aiming for the digital currency exchange to include the disclaimers to ensure they occupy at least 80% of the screen.
The Delhi Supreme Court has issued notices to regulators and some of the leading stock exchanges to control what it believes is misleading advertisements on television and other digital media.
According to New Indian Express, a bank made up of Judges DN Patel and Jyoti Singh sought answers from the country’s three leading exchanges – WazirX, CoinDCX and Coinswitch Kuber. She also sent the notices to the Ministry of Information and Broadcasting, which regulates advertising in India, and the Indian Securities and Exchange Service.
The court acted after receiving a petition from two lawyers – Vikash Kumar and Ayush Shukla – seeking direction for the advertisements digital currency companies can place on television. The two, who are practicing lawyers, petitioned the court to order the exchange with a disclaimer text that covers at least 80% of the screen.
You also want the ads disclaimer to read slowly and last at least five seconds.
According to the two lawyers, exchanges run enticing ads in visual media that attract investors without informing them of the risks associated with digital currencies.
They claimed in their petition that there is usually no voice over for the disclaimers. Also, the text is typically too small to be read by the audience, and is less than two seconds for most ads.
Digital currency ads should convey that the industry is riskier than traditional equity investment products, they said.
“A normal small investor who regularly sees the audiovisual advertising on the television of the companies involved as well as on online websites such as YouTube can suffer immense losses as a result,” it says in her plea.
Indian exchanges have no problem with the requirement as they are also trying to protect their users, CoinDCX communications chief Ramalingam Subramanian told Business Insider.
He noted, “While regulation, an ongoing industry demand, complies with advertising policies, adding disclaimers to all of our ads that go on the air is part of our self-regulatory framework. We are committed to the secure and legally compliant measures required for the mass adoption of crypto assets, and we are ready to comply with all measures that increase investor protection. “
In Great Britain, the Advertising Standards Authority (ASA) is also working more intensively on advertisements in digital currencies. As CoinGeek reported, the regulator sees digital currency displays as “an absolutely crucial and priority area for us”.
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