Key Takeaways:
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InThe Securities and Exchange Board of dia has advised against using celebrities to promote cryptocurrencies.
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Crypto is not yet regulated in India and using it without understanding may result in breaking the law.
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The country currently imposes a 30% tax on crypto transactions.
In a proposal to Parliament's Standing Committee on Finance last month, the Securities and Exchange Board of India (SEBI) said prominent public figures, including celebrities and athletes, should not be allowed to promote cryptocurrencies in the country.
“No high-profile advertising”
Although cryptocurrency has been widely used in India for years, it is still in its infancy from a regulatory perspective.
Furthermore, due to the lack of regulators, all legal responsibility and decision-making lies in the hands of SEBI.
Therefore, the regulator recently suggested that it would be best to avoid mass promotion of an asset class that is currently neither regulated nor recognized.
SEBI also suggested that the advertising disclosure should also address possible violations of law that may arise due to the widespread use of cryptocurrencies (Bitcoin, Ethereum, etc.).
In line with the proposal, a source quoted SEBI as saying:
“As crypto products are not regulated, prominent public figures, including celebrities, athletes, etc., or their voices may not be used to endorse/promote crypto products.”
Additionally, the regulator also suggested adding to the disclaimer: “Trading in crypto products may result in criminal prosecution for possible violations of Indian laws such as FEMA, BUDS Act, PMLA, etc.”
The initial guidelines for cryptocurrency-related advertising in the country are:
“As it is a risk category (VDAs), celebrities or prominent personalities appearing in such advertisements must take special care to conduct due diligence on the statements and claims made in the advertisement so as not to mislead consumers respectively.” “
The story goes on
This is why SEBI also wants to put an end to the use of celebrities for crypto advocacy.
India and crypto
The government has had conflicts with the crypto community in the past.
However, after realizing the importance of cryptocurrencies in India, the Finance Ministry decided to impose a 30% tax on cryptocurrency-related transactions.
The decision was made without creating any law or regulatory body.
According to reports, the country's Goods and Services Tax (GST) Council recently considered an additional 28% tax on all cryptocurrency-related activities.
Although there is no formal confirmation yet, the country's crypto community is worried about the future of digital assets in India.
This article was originally published on FX Empire
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