New Delhi: Delhi High Court has issued notice to the Centre, SEBI, and others, to bring guidelines for television advertisements of crypto trading platforms in India. The notice has also urged the concerned authorities to take appropriate actions against the crypto trading exchanges.
At present, several crypto trading platforms are reportedly advertising without following any adequate standardised disclaimers. Without the necessary advisory in place, crypto trading appears lucrative in advertisements.
Several crypto trading platforms are also luring first-time investors by giving them free cryptocurrency worth Rs 100 as a promotional offer. These investors are flocking to crypto trading platforms without fully understanding the negative sides of cryptocurrency.
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
Financial experts around the world have been raising flags against the rising adoption of cryptocurrency. For instance, the Basel Committee on Banking Supervision has pointed out that cryptocurrencies such as bitcoin pose higher risks to banks.
Other factors such as the use of cryptocurrencies for money laundering and price volatility can lead to defaults and huge losses for banks.
At present, the Indian government is also planning to bring a bill to tame cryptocurrency transactions in India with the upcoming Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. Also Read: Gold Price Today, 14 July 2021: Gold surges, but still cheaper by Rs 8300 from record levels
Market estimates suggest that over 8 million investors are currently holding crypto investments worth over $1.4 billion. However, the uncertainty over the legal status of cryptocurrencies in India is creating confusion in the minds of investors who are shying away from placing bets on digital assets. Also Read: Google Meet’s unlimited group video calling freebie comes to an end