High Court of India Requests Advertising Disclaimer From Crypto Exchanges
Amid regulatory uncertainty over cryptocurrencies in India, a supreme court in the country’s capital is taking action to regulate the advertising of local crypto exchanges.
The Delhi Supreme Court has issued notices to local governments and crypto companies to enforce guidelines for promoting cryptocurrency exchanges on national television, the New Indian Express reported today.
The court is seeking responses from the Indian Securities and Exchange Commission (SEBI), the Ministry of Information and Broadcasting, and major Indian crypto exchanges such as CoinDCX and WasirX, and plans to consider the matter in August.
According to the report, attorneys Ayush Shukla and Vikash Kumar have urged the court to ask SEBI to issue advertising policies requiring that crypto-audio media ads contain a disclaimer that covers 80% of screens. .
Plaintiffs have stated that many cryptocurrency advertisements on national television do not contain voice-overs, while the disclaimer text is displayed in short and small letters, often with lines like “money”. Subject to market risk. “
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The court’s defense found that crypto assets are inherently riskier than traditional equity investment products, mutual funds and other investment vehicles, so more action is needed to ensure investor protection. “However, an ordinary retail investor who watches an audiovisual advertisement on television and on online sites such as Youtube could suffer huge losses as a result,” the court found.
The news comes as India is still struggling to enact clear regulations for the crypto industry in the country as allegedly anonymous government sources continue to raise concerns about an injunction. Despite the ongoing regulatory uncertainty, investments in India’s cryptocurrencies rose 600% over the past year.