Indian Regulatory Body SEBI Ceases “Celebrity Endorsement” for Crypto

The Securities and Exchange Board of India (SEBI) 

suggested to the Parliamentary Standing Committee on Finance last month that no notable public personalities, including celebrities and athletes, should be permitted to promote cryptocurrencies in India.

"There will be no high-profile promotion"

Although cryptocurrency has been around for years in India, it is still in its infancy in terms of regulation.

Furthermore, owing to the absence of an oversight authority, the SEBI is responsible for all legal matters and decision-making.

As a result, the regulatory authority has recommended that broad marketing of an asset class that is presently unregulated and unrecognized be avoided.

The SEBI also urged that the advertising disclosure include the potential for legal violations as a result of the widespread usage of cryptocurrency (Bitcoin, Ethereum, etc.).

"Given that crypto goods are unregulated, famous public personalities like celebrities, athletes, etc. or their voice should not be utilized for endorsement/advertisement of crypto products," a source reported SEBI as saying.

In addition, the regulatory authority recommended including a statement that "dealings in crypto goods may result in punishment for probable violations of Indian laws such as FEMA, BUDS Act, PMLA, and others."

"Since this is a risky category (VDAs), celebrities or prominent personalities who appear in such advertisements must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers," according to the original guidelines. This is why the SEBI is also looking to end the use of celebrities for crypto endorsing.

India and Bitcoin

The administration has already had run-ins with the crypto community.

However, after noting the growing popularity of cryptocurrencies in India, the Finance Ministry decided to impose a 30% tax on cryptocurrency transactions.

The decision was made without any legislation or regulatory authority.

According to reports, the country's Goods and Service Tax (GST) Council is considering levying an extra 28 percent tax on all cryptocurrency-related activity.

Although no official confirmation has been received, the country's crypto community is concerned about the future of digital assets in India.