The Securities and Exchange Board of India (SEBI) is said to be considering prohibiting prominent personalities, such as celebrities and athletes, from promoting and endorsing cryptocurrency. The regulator also urged that when public people promote crypto items, they be held accountable for any legal infractions.
SEBI’s Plan for Crypto Branding and Promotion
According to Businessline, the Securities and Exchange Board of India (SEBI), the country’s securities and commodity market regulator, has proposed preventing prominent personalities, such as celebrities and athletes, from supporting crypto products. In addition, the agency requested that advertising be required to notify any potential legal infractions.
When questioned about numerous crypto concerns, SEBI recently expressed its thoughts with India’s Parliamentary Standing Committee on Finance, according to sources. The regulator responded to the committee with a detailed written response.
The Indian Ministry of Finance also invited SEBI to comment on the Advertising Standards Council of India’s crypto advertising rules, which were issued in February (ASCI).
The SEBI allegedly wrote:
Because crypto products are unregulated, significant public figures such as celebrities, athletes, and politicians, as well as their voices, should not be used to advocate or advertise crypto items.
Furthermore, the securities regulator urged that public people be held liable for supporting crypto items, which could be illegal under some laws, such as the Consumer Protection Act.
SEBI also recommended that the ASCI disclaimer include the following statement: “Dealing in crypto goods may result in prosecution for probable violations of Indian laws such as FEMA, BUDS Act, PMLA, and others.”
“Because this is a risky category, celebrities or prominent personalities who appear in such advertisements must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers,” according to ASCI’s crypto guidelines, which went into effect on April 1.
In the meantime, the Indian government is developing a crypto policy. Officials from the Finance Ministry met with representatives from the International Monetary Fund (IMF) and the World Bank to discuss cryptocurrency legislation. The decision on crypto legislation will not be hastened, according to India’s finance minister. In India, crypto revenue is now taxed at 30%.
Also Read: The Indian Central Securities Depository will Use Blockchain to Support its Bond Monitoring
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