Delhi High Court, on Wednesday, ordered several authorities in India, including the Centre, SEBI and others, to regulate television advertisement of crypto exchanges in the country.
It also asked the concerned authorities to take some appropriate action against crypto trading platforms.
There are several crypto trading platforms in the country that advertise without any standardized disclaimers.
Notably, the crypto-related advertisements without any advisory appear to be very profitable to the audiences.
As per the report, many exchanges have also started promotional offers, through which they try to lure individuals by offering free cryptocurrency worth Rs. 100 ($1.34). At some point, the exchanges even get successful, but the individuals or the investors, who have been gathering to the crypto trading platforms, do not know the negative aspects of cryptocurrencies.
Delhi HC issued notice to Centre, SEBI, and others on a plea seeking direction to take effective steps and issue appropriate guidelines/ rules against crypto-asset exchanges in India advertising on national television without adequate standardized disclaimers. pic.twitter.com/3OpMvPRdDU
— ANI (@ANI) July 14, 2021
However, if the cryptocurrency has proponents around the world, it also got some market critics who are against its adoption. Basel Committee on Banking Supervision is one of those financial experts that specified, ‘cryptos pose higher risks to banks.’
Apart from this, cryptocurrencies could be used for facilitating illegal activities like money laundering. Also, these digital assets are volatile in nature which could be the reason for the banks to suffer a huge loss.
Since the start of the year 2021, the Government of India has been working on Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. It planned to present the bill during this Monsoon Session in the Parliament, but the digital asset bill lost the dice to 17 other bills.
The report states that the total crypto investment by 8 million investors is over $1.4 billion. The industry is trying to attract more investors but, due to, the uncertain regulatory environment for crypto, it has become a bit difficult.