Will Indian Celebrities Face Legal Charges for Endorsing Cryptos?

Crypto

In India, cryptocurrencies remain unregulated, so why are celebrities still endorsing cryptos?

The Securities and Exchange Board of India (SEBI) has reportedly suggested that Indian celebrities should not endorse cryptocurrencies. As per a report by BusinessLine, the regulatory body has said that “no prominent figures, including celebrities, sportsmen” should endorse cryptocurrencies to the public. Apart from that, SEBI also added that advertisement disclosures should also talk about a possible violation of laws when dealing with cryptocurrencies. This already holds true for stocks and mutual funds brokerage firms, so it remains to be seen how the latest SEBI call affects crypto advertisements in India.

According to multiple media reports, the capital markets regulator said public personalities could be held accountable if crypto ads are found to be violating regulations. Industry players have a mixed opinion on the proposal. A few of them believe that investment decisions are not influenced by a celebrity or renowned personality, whereas others think that the government should not hurry to take any such action.

However, the Advertising Standards Council of India (ASCI) said that it isn’t discussing changing its guidelines on crypto advertisements, clearing the air on its position as an important stakeholder in a suggested ban on Indian celebrities endorsing crypto products.

Crypto assets have been gaining popularity in India, with more than 20 million Indians investing in them. This has led to a race among crypto exchanges to acquire users and grow trading volume. Therefore, there is a need for strict ad regulation in crypto. Because, neither the ASCI nor the Sebi has the authority to ban celebrities from endorsing products. The power completely rests with the government of India alone.

 

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