The Indian government is planning to prohibit cryptocurrency ads that promise wild returns. Such advertisements are growing across media platforms and were seen in abundance during the IPL 2020 and the recent T20 World Cup cricket matches.
In a memo penciling the summering of a meeting of PM Narendra Modi and the crypto industry players late on Saturday, the government has conveyed its displeasure on the cryptocurrency advertisements that promise wild profits. Reported ET.
According to the ET report, the government and the crypto stakeholders have reached consent that such advertisements are misleading youths and should be curbed.
"The government is cognizant of the fact that [blockchain] is an evolving technology hence the government will keep a close watch and take proactive steps," says the memo.
There have been ads across platforms from Crypto players like CoinSwitch Kuber, CoinDCX, and WazirX, promising big returns for investors on their crypto investments.
Well, crypto firms are bombarding people with ads across platforms doubling down on their marketing spend while the cryptocurrencies have yet not been accepted as legal tender in the country. The crypto sector in India lacks a legal framework and regulatory norms. The Finance Ministry and the Reserve Bank of India (RBI) have been studying whether crypto should be approved as a legal tender or not.
In the winter session, a cryptocurrency bill is anticipated and till then investing in cryptocurrencies can be a dangerous move, in India.
The disclaimer that says that cryptocurrency is an unregulated digital currency and not a legal tender is a thin line that comes at the end of the ads and is not apparent to many people who have started investing via various crypto exchanges.