Earlier this week, the Indian Securities and Exchange Commission (SEBI) said that “a prominent public figure, including celebrities and sportsmen,” would approve cryptocurrency products when answering questions raised by Parliament’s Standing Committee on Finance. I suggested not to be.
Currently, cryptocurrency players comply with self-regulation under the guidance of IAMAI (Indian Internet and Mobile Association) and BACC (Blockchain and Cryptocurrency Council).
Currently, cryptocurrencies are unregulated and declared as taxable virtual digital assets. However, the Indian Advertising Standards Council (ASCI) has also introduced guidelines for advertising virtual digital assets. The industry is waiting for a bill on virtual assets from the federal government.
BestMediaInfo.com has contacted industry experts to gain insights into what SEBI’s proposals mean for the industry, their advertising strategy, and how it affects their outlook. ..
Impact on advertising
Cryptocurrency players were one of the largest advertisers in 2021 and were very active during the Indian Premier League (IPL). Celebrities such as Ayushmann Khurana, Ranveer Singh and Janhvi Kapoor have approved cryptocurrencies. However, the ambiguity and continued restraint of the guidelines has had a significant impact on advertising costs, media planners say. This was especially noticeable when many crypto players missed ads during the 2022 IPL.
Vijay Mallya Maharajan
According to Bitcrunch founder and CEO Vijay Pravin Maharajan, SEBI claims that crypto advertising has no celebrities, so the industry needs to rethink its marketing strategy.
“We have reached a point where we need to rethink our marketing strategies to raise awareness among crypto enthusiasts. Celebrities are one of the easiest ways to distribute information. Advertising is one of the easiest ways to distribute information. , We need to design to emphasize the issue, while emphasizing the importance of investor judgment, “says Maharajan.
Lamarin Gum Sabra Manian
In addition to this, Ramalingam Subramanian, Head Brand of CoinDCX’s Marketing and Communications Division, said: We are constantly raising awareness through education. We promise to comply with all the guidelines set for us. “
Sathvik Vishwanath
Sathvik Vishwanath, Co-Founder and CEO of Unocoin, said: “
Does this include “finfluencers”?
Cryptocurrency brands’ TV ads are continuously monitored by authorities, but these brands have also begun to actively invest in influencer marketing. Today, “influencers” are considered a category of influencers that educate people about the crypto market.
Shueta Prandale
Shweta Purandare, founder and advertising compliance consultant at Tap-a-Gain, said SEBI has already implemented these guidelines for products like mutual funds. They are now expanding it towards cryptocurrencies.
“SEBI, as a regulatory agency, has similar guidelines for commodities such as investment trusts. They currently recommend extending it to cryptocurrencies. It is regulated because the sector is not regulated at this time. I’m glad that the authorities intervene. Celebrities have a big impact on public opinion and decision making. If they don’t have the right knowledge about cryptocurrencies, can celebrities support it? Looking at the ads that were posted a few months ago on the tagline and in the claims, it sounds very easy and safe, and it’s almost certainly a good profit, “Purandare said. ..
But she added, it’s unclear if this also includes the use of financially influential people on social media. This trend has been increasing for several years. “I like SEBI. Regulatory agencies also intervene to tackle the threat of proxy advertising and the support of celebrities in it. These sectors, finance and health, both have a significant impact on consumers. So the move by SEBI is welcomed, but it’s still unclear if the definition of “celebrity” includes the social media “Fin-fluencers” we see today and advises on cryptography. not. “
Pranav Panpalia, founder of Opraah Fx, said influencers are the most preferred marketing medium for crypto brands. It helped them (crypto brands) reach their target audience at the grassroots level.
“Many crypto brands have harnessed the power of influencers to educate the masses and raise awareness about this new digital investment and trading system. Influencers are one of the fastest growing fin technologies. Not being able to advertise one will hinder not only the economy but also growth, but also financial literacy. But the governing body should create some rules and regulations for promotion rather than a total ban. I believe it was. “
He revealed that crypto brands are spending around Rs 50 to Rs 1 on one large campaign.
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Karthik Nagarajan
“Sevi’s recommendations are difficult to quantify, but they say they are” prominent public figures. ” Influential figures stand out as much as any other celebrity today. This ambiguity will bring some decisions and confusion to the market in the short term, “Carsic said. Wavemaker India, Chief Content Officer, Nagarajan.
He added that this development may be in the best interests of consumers and players, as the entire sector is in an ambiguous state.
“The situation in the United States has changed a lot from the beginning, and celebrities have been at the forefront of crypto promotion. Perhaps the difference is that in India, very small investors with significantly lower economic tiers are more likely to be cryptocurrencies. The fact that they are exposed. The depression we see can be catastrophic in their case, “Nagarajan added.
According to ASCI, they have always insisted that celebrities should do due diligence.
Manishaka pool
“ASCI has specific guidelines for celebrities. In addition, there are cryptocurrency guidelines. Given that cryptocurrency products are not regulated, we recommend prominent public figures such as celebrities, sportsmen, or cryptocurrency products. / They need to be treated with caution when promoting, “said Manishakapur, CEO and Secretary-General (SG). ASCI.
“We have always argued that we need to do due diligence on celebrity-backed claims. Consumer protection legislation also states that the ads posted by supporters are misleading. , And penalties for supporters if they do not perform due diligence. Because this is a dangerous category (virtual digital assets), celebrities and celebrities appearing in such ads Special attention should be paid to due diligence on statements and claims made in advertising so as not to mislead consumers. They may not have domain expertise, but they We must make an effort to do due diligence as part of our responsibility, “she said.
