Ban on celebrity endorsement of cryptocurrency

by Subhechcha Ganguly
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Red flag raised against endorsements of any kind of cryptocurrency products by athletes and public figures. The Securities and Exchange Board of India (Sebi) has flagged prominent public figures endorsing cryptocurrency products in any type of advertisement, including celebrities, athletes, etc. According to SEBI, neither the Securities Contracts (Regulation) Act of 1956 nor SCRA define crypto assets as securities, nor has the Central Government designated them as such. According to a BusinessLine report citing sources, SEBI informed the Parliamentary Standing Committee on Finance of its position when members questioned officials about various aspects of cryptocurrency.The regulator then provided a thorough written response and asserted that because crypto products are not regulated, well-known public figures cannot be used to endorse or advertise crypto products.

As a major stakeholder in the proposed ban on Indian celebrities endorsing cryptocurrency products, the Advertising Standards Council of India (ASCI) clarified that it is not talking about changing its regulations for crypto advertisements.Manisha Kapoor, the CEO of the Ad Council, stated that “this appears to be the SEBI’s position in ongoing discussions within the government.”Along with the ASCI advertising standards, new rules have been made requiring digital currency exchanges to keep user information on file for at least five years and imposing a 30% tax on gains from digital currency trading.

 

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