Delhi High Court Issues Notice On Plea For Guidelines Against Crypto-Currency Exchanges Advertisements On Televisions Without Standardized Disclaimers

The Delhi High Court has issued notice on plea seeking issuance of guidelines or rules to be framed against the crypto currency exchanges in India advertising on televisions without adequate standardized disclaimers. A division bench comprising of Chief Justice DN Patel and Justice Jyoti Singh issued notice in the plea after hearing Advocate Aayush Shukla appearing as petitioner in person. The plea moved Advocates Aayush Shukla and Vikash Kumar further seeks appropriate guidelines/ circular/ rules mandating the disclaimer text to cover 80% of the television screen while advertising, with a slow voice over read in place of a speed-read lasting duration of five seconds. The plea makes three established crypto-exchanges as respondents functioning within territory of India running advertisements regarding investments pertaining to crypto-currencies and crypto-asset. Furthermore, the plea also makes SEBI and Secretary, Ministry of Information and Broadcasting, Government of India as respondents. Stating that it has been the norm for companies offering mutual funds products to adhere to standardized guidelines and rules put in place in advertisements run through audio-visual media qua mutual funds investments, the plea states that Crypto-assets must be given the same treatment as mutual funds in order to protect the retail investors “who are not aware of the inherent characteristics of crypto-assets.”