Key Findings:
- India’s Securities and Exchange Board has suggested not using celebrities to promote crypto.
- Crypto is not yet regulated in India and using it without understanding can result in breaking the law.
- Currently, the country has imposed a 30% tax on crypto transactions.
In a proposal to the parliamentary Standing Finance Committee last month, the Securities and Exchange Board of India (SEBI) stated that no prominent public figures, including celebrities and athletes, should be allowed to promote cryptocurrencies in the country.
Cryptocurrency, although widely used in India for years, is still in its infancy from a regulatory perspective.
Furthermore, due to the lack of a supervisory authority, all legal responsibility and decision-making falls into the hands of the SEBI.
As such, the regulator recently suggested that it is best to avoid mass promotion of an asset class that is currently neither regulated nor recognised.
The SEBI also suggested that advertising disclosures should also talk about possible violations of the law that may arise from the rampant use of cryptocurrencies (Bitcoin, Ethereum, etc.).
In line with the suggestion, a source quoted SEBI, stating:
“Since crypto products are unregulated, prominent public figures including celebrities, athletes, etc. or their voice may not be used to endorse/advertise crypto products.”
Additionally, the regulator suggested adding to the disclaimer that “trading in crypto products may result in prosecution for potential violations of Indian laws such as FEMA, BUDS Act, PMLA, etc.”
The original guidelines for cryptocurrency-related advertising in the country were:
“Because this is a risky category (VDAs), celebrities or prominent figures appearing in such ads must take special care to ensure that they have performed the statements and claims made in the ad with due care not to mislead consumers. ”
For this reason, the SEBI is also trying to put an end to the use of celebrities for crypto verification.
India and Crypto
The government has had its altercations with the crypto community in the past.
However, after realizing the proliferation of crypto in India, the Treasury decided to impose a 30% tax on cryptocurrency transactions.
The decision came without establishing any law or regulatory body.
Recently, the country’s Goods and Service Tax (GST) Council was reportedly considering an additional 28% tax on all cryptocurrency-related activities.
Although no formal confirmation has yet been received, the country’s crypto community is concerned about the future of digital assets in India.
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