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Tuesday, March 28, 2023

Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products

Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products – 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 violations.

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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 urged SEBI to comment on the Advertising Standards Council of India’s crypto advertising rules, which were issued in February.

Also Read: Chainalysis Reaches $8.6 Billion Valuation In $170 Million Series F Funding Round

The SEBI allegedly wrote:

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“Because crypto products are unregulated, notable public figures like athletes, celebrities, as well as their voices, must not be used to advertise or advocate crypto products.”

Furthermore, the securities regulator urged that public personalities be held liable for supporting crypto products, which could be improper under some laws, such as the Consumer Protection Act.

SEBI also recommended that the ASCI disclaimer include the following statement: “Dealing in crypto products may result in prosecution for possible violations of Indian laws such as PMLA, FEMA, BUDS Act, etc.”

According to ASCI’s crypto guidelines, which went into effect on April 1, “because this is a risky aspect, prominent personalities or celebrities who appear in these kinds of advertisements should indeed take special care to ensure they must have done their due diligence concerning statements and claims made in the advertisement, so as not to mislead consumers.”

Also Read: Coinbase Ventures Backed Startup to Build Pan-African Crypto Exchange With $23 Million Capital Raise

Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products – In the meantime, the Indian government is working on a crypto policy. Officials from the Finance Ministry met with representatives from the International Monetary Fund (IMF) as well as the World Bank to discuss cryptocurrency legislation. The decision on crypto legislation would not be rushed, according to India’s finance minister. In India, crypto revenue is now taxed at 30%.

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