The Delhi High Court issued notices to Centre, SEBI (Securities and Exchange Board of India), and others on a plea seeking direction to take effective steps and issue appropriate guidelines against crypto advertisements on national television without adequate standardized disclaimers. The High Court sought responses from the Ministry of Information and Broadcasting, SEBI, M/s Wazir X, M/s CoinDCX, and M/s Coinswitch Kuber and slated the matter for August.
The plea stated that crypto-assets are inherently riskier than traditional investment products.
The petition states that as Wazir X, CoinDCX, and Coinswitch Kuber are made a party in the matter as these crypto firms that are directly involved are established crypto- exchanges currently functioning within the territory of India who run advertisements enticing and drawing retail investors to trade, invest in cryptocurrencies. The plea further mentioned that crypto-assets are inherently riskier than traditional equity investment products in the share market, mutual funds, and all other forms of financial products offering investment opportunities.
UK regulator is preparing to crack down on crypto advertisements.
Along with India, UK authorities are also preparing to regulate cryptocurrency advertisements. As reported earlier, the UK advertising regulatory, the Advertising Standards Authority (ASA), is reportedly preparing a crackdown on the marketing tactics of cryptocurrency companies by publishing misleading advertisements. According to the Financial Times report, ASA has put crypto within ‘red alert’ priority within financial advertising. The ASA will focus on the ads running on the online and social media platforms and will push to take down misleading and irresponsible promotions. The retail interest in cryptocurrency in recent years has increased quite a lot, making regulators take note of the advertising of crypto products.