A High Court In India Takes Action To Regulate Advertising By Cryptocurrency Exchanges

High Court of Delhi is making clear orders mentioning that the disclaimer should cover 80% of the advertisement screen regarding the crypto ads being shown on national TV. In the middle of the unreliable nature of the current regulatory system of cryptocurrencies in the Indian scenario, strong actions have been taken by the Delhi High Court of India for regulating the native crypto exchanges.

The notices have been issued by the administrations of the crypto companies to clarify the terms and conditions to be implemented on the advertisement of the cryptocurrency to be published on national television, as reported on Wednesday by the New Indian Express. The court has also ordered a discussion between the Broadcasting and Information Ministry, SEBI (Security and Exchange Board of India), and the prominent crypto exchanges of India such as WasirX as well as CoinCDX for providing a reflection (expected to be held during August) on the current scenario.

As the report states, it has been argued by the lawyers Vikash Kumar and Ayush Shukla that the court should order the SEBI for the issuance of certain important tangible instructions regarding the audio-visual crypto advertisements demanding the incorporation of a clear display of the ad disclaimer, which will cover the 80 percent screen of the respective ad and its voiceover will also be included spanning at least up to 5 seconds.

The reports pronounce that the reason behind this ruling is that the majority of the ads regarding cryptocurrency, which are published on the national Television, do not contain voice narration and even the text (having being written in small alphabets) stays on the screen for just a few seconds expressing that cryptocurrency is not a regulated currency neither it is a legal tender thus it may contain market risks.

It has been reportedly mentioned in the court’s petition that there are some inherent potential risks in crypto assets as compared to the customary mutual funds, investment products, and other instruments; therefore, it requires additional measures for ensuring the protection of the investors. It was further noted by the court that a common retail investor who comes across the audio-visual crypto ads on the websites such as YouTube or the Television might become prey to a massive loss on their behalf.

Leave a Reply

Your email address will not be published.