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Crypto regulations around the world have proved to be quite slippery when it comes to those who are supposed to abide by them. India seems to be quite a leading case in this context with multiple crypto influencers. Leaving aside the issues with other regulatory measures, the slippery slope becomes much more evident when it comes to the issue of adherence to the ad regulations by the Indian crypto influencers. The crypto influencers in the Indian context specifically refer to those who are on YouTube and Instagram with a considerable number of followers in the highly volatile cryptocurrency market.
The Advertising Standards Council of India (ASCI), a voluntary self-regulatory organization of the advertising industry, reports that Indian crypto influencers are responsible for violations to the extent of more than 92% of crypto-related ad regulations in India between the period January 2022 and May 2022. Significantly, the cases of violation of crypto regulations by the crypto influencers far surpass those by the celebrities who are also there. The cases include both the categories of defying the influencer guidelines and the crypto regulations guidelines of the ASCI.
A major source of violation is not complying with the key guideline of inserting a disclaimer— stating the risks involved in the transactions of unregulated crypto products in the cryptocurrency market. Guidelines also include the attachment of clear and transparent information about crypto products and non-fungible tokens to dispel any ambiguity. The ASCI has taken steps to ensure compliance with such guidelines through suggested changes to be implemented but the rate is not that impressive. Incidentally, the Government of India is into serious thinking and is also taking gradual but steady measures with regard to the non-disclosure of the necessary information about transactions in the cryptocurrency market. Misleading crypto advertising from Indian crypto influencers and not following crypto regulations are also part of the concern of the government. In mid-November, 2021, in a high-powered meeting chaired by the Prime Minister, Mr. Narendra Modi, strong concern was expressed about "over-promising and non-transparent" advertising causing a misleading impact on the youth of India. The government of India has now taken the path of consulting the various experts and stakeholders through what is described as the "progressive and forward-looking" approach to deal with the problem of violation of ad regulations.
It is common knowledge that the rise of cryptocurrencies is integrally linked to the invincible march of the most sophisticated technology and it cannot be halted by any ban. In fact, the Supreme Court of India has also revoked the ban on cryptocurrency trading which was earlier imposed by the Reserve Bank of India. But a string of regulatory mechanisms and strong compliance with them are the need of the hour, for the crypto investors, Indian crypto influencers, and for the good of the economy of the country to avoid violations of ad regulations as well as crypto regulations to promote the highly volatile cryptocurrency market.
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