As the government plans to regulate cryptocurrency, the Blockchain and Crypto Assets Council (BACC) is working on regulations to have a standard process for KYC across the crypto industry and also prescribe advertising standards for stakeholders engaging in crypto exchange, says Ashish Singhal, the CEO of CoinSwitch Kuber, one of the cryptocurrency exchanges in India.
The BACC’s move comes after the government had raised the topic of regulating cryptocurrencies during their discussions with crypto exchanges.
In July this year, the Delhi High Court had asked crypto exchanges to standardise disclaimers to their television advertisements.
CoinSwitch Kuber is one of the many crypto platforms that have been aggressively marketing their product during sporting events like the IPL.
According to reports, cryptocurrency exchanges cumulatively spent Rs 50 crore on advertising during the ICC Men’s T20 World Cup.
“Advertising standards have to be the same for all players. Just one platform tweaking their advertising practices or KYC standards will not be of any help. Hence, we are trying to set standards”, Singhal said.
Crypto exchanges have also been roping in celebrities to endorse their platforms and cryptocurrency trading.
A senior official from another exchange says that the major reason crypto exchanges are having to advertise their products is because of the taboo associated with virtual currencies in India.
“We advertise to tell people that there is nothing wrong with crypto. If it becomes a mainstream product with regulations we won’t have to be so overt about what crypto trading is”, the senior official said.
Cryptocurrency or virtual currency has been a grey area in India with no clear regulations. In April 2018, the RBI had asked banks to stop financial institutions from providing services to crypto exchanges.
After the Supreme Court’s intervention, this ban was lifted.
Meanwhile, the government is set to table a bill on cryptocurrencies in the upcoming winter session of parliament.
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