Saturday, May 21, 2022

Indian Crypto Exchanges May Get Regulated By ASCI

The Advertising Standards Council (ASCI) of India might offer the first set of guidelines to the Indian crypto industry. The non-governmental regulatory body decided to go through all the crypto-related issues after it identified them as an ‘emerging area of concern’.

The recent decision was followed by Income Tax Department’s order, in which the government agency asked all the crypto exchanges in the country to provide their trading details.

Manisha Kapoor, the Secretary-General of the advertising industry’s self-regulating body, said, “ASCI is examining additional and fresh guidelines required to protect interests of consumers through consultations with different stakeholders.”

The guidelines issued by the non-governmental regulatory body are comprised of the orders released by the Department of Consumer Affairs, Food Safety Standards Authority of India (FSSAI), AYUSH and Information & Broadcasting (I&B) ministries. 

Although these guidelines are not legally enforceable, any kind of violation by the crypto exchanges would be treated at par with government rules.

According to the existing guidelines of ASCI, the information provided by advertisers should neither be misleading nor false. They should also not exploit consumers’ lack of expertise on the matter. 

Further, it has been mentioned that ASCI has been formulating some fresh guidelines.

A few weeks ago, a plea has been registered in Delhi High Court against crypto exchanges regarding advertisements disclaimers. The court later ordered the Securities and Exchange Board of India (SEBI) and the I&B Ministry to force exchanges to run standard disclaimers along with their advertisements, as it is important for most financial products.

A few of the Indian crypto exchanges like WazirX, CoinSwitch, ZebPay and CoinDCX offer the services of trading cryptos, including Bitcoin, Ethereum and Dogecoin, on their platforms.

Recently, the I-T Department asked the Indian crypto exchanges to provide trading details on their platforms, in order to, tax the total profit during the bull run. 

As per the report, three Indian crypto exchanges received a circular from the government agency, in which it asked about all ledger details to look for time, price, and the number of cryptos sold by the exchanges.

It is not the first time the crypto exchanges being under surveillance, in 2017, the crypto trading platform received the same kind of notification from the authorities and at that time Bitcoin reached an all-time high.

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