sebi: Industry divided over Sebi’s proposal to ban celebrities in crypto ads


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.

New Delhi: After a new set of guidelines for the crypto advertisement laid down by the Advertising Standards Council of India (ASCI) in February earlier this year, market regulator Sebi has now proposed to bar celebrities and public figures from endorsing cryptos.

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.

However, the ASCI said it isn’t discussing changing its guidelines on crypto advertisements, clearing the air on its position as an important stakeholder on a suggested ban on Indian celebrities endorsing crypto products.
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Sebi had submitted a written report to the Parliamentary Standing Committee on Finance, Hindu Businessline reported.

The move is likely to be rolled out due to the rising restrictions and curbs on the crypto space in India, such as taxations on gains, TDS and other measures taken by the government in the last few months.

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.

It might not be prudent for institutions to jump the gun while the government is doing a detailed study on regulating the crypto industry, said Vikram Subburaj, CEO, Giottus Crypto Platform.

“This would just undermine the work of the regulators. A holistic approach to the industry, guided by regulations, will be the best way forward for both the consumers and the industry,” he said.

Sathvik Vishwanath, Co-Founder & CEO, Unocoin said the same is already true for stock and mutual funds broking firms. “As we are dealing with money and returns directly, it is important that a common man does not get influenced by celebrities,” he added.

ASCI Secretary General Manisha Kapoor had earlier said that cryptocurrency is an emerging area of concern. ASCI has been examining additional and fresh guidelines required to protect the interests of consumers.

However, 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. Presented By

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Updated: 05/17/2022 — 06:00