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Have you noticed one thing? During the IPL matches, the number of cryptocurrency advertisements has increased significantly. Projected as a very simple and seamless method of transaction, people are being lured to invest in cryptocurrencies. If you look at the advertisements carefully, you will not see any disclaimers related to the nature of investments despite the regulatory uncertainty surrounding them in the country being public knowledge.

Remember advertisements related to mutual funds a few years ago. Since it is very difficult to understand the stock market, people were told that it would be better to invest in the stock market through mutual funds. All fund houses started advertising. In 2005, SEBI decided that it was necessary to give disclaimers at the end of the advertisement stating that the investment is subject to market risks, so read all the documents carefully before investing.

Disclaimers in TV ads

It was not difficult to follow this instruction in newspapers or magazines, the real problem was that of TV. Where to take extra time to say a disclaimer in a 10 second or 20 second advertisement. But those who prepared the advertisement broke it too and would say about the disclaimer in two seconds or less. This means that the advertisement of this disclaimer coming at the end of the advertisement would come at such a speed that it is not easy for anyone to understand and the ritual of presenting the disclaimer would be paid.

However, this trend did not last long as SEBI decided to implement the new rules from April 1, 2008, stating within five seconds that the disclaimer was given in clear terms. Although the mutual fund companies initially objected that putting a 5 second advertisement on a disclaimer in a 10 second or 20 second advertisement will hurt them, but in the end they had to abide them.

Even in advertisements of insurance products, the disclaimer states that insurance is the subject matter of the solicitation. Even gaming apps say that there are elements of financial risks and users should play responsibly and at their own risk.

Is there such clarity in cryptocurrency advertising?

Now take the advertisement of a cryptocurrency. Everything is being shown well. You are being told how easy it is to invest money in this medium. Advice is available at all times. Advertisement over. At the very end the plate reads a line – Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risk. Risks involved). It is guaranteed that the viewers who see the advertisement will be rare who have seen or read this disclaimer. First, it is written in such a small font that it is not possible to read it and then it is not given any pause in the 10-20 second advertisement, leave aside the voice over.

Now the thing to note is that immediately before the Budget session, the government proposed to bring a new law regarding cryptocurrency. It also got a place in the working of Parliament. It was being reported that private cryptocurrencies will be banned and the Reserve Bank will be allowed to bring a new virtual currency. As the session progressed, the matter of the bill kept getting pushed. Then it was said that more discussion is needed on this subject and the Bill will be brought in the near future. Finance Minister Nirmala Sitharaman’s statement then shocked everyone when she said that ‘we are not shutting all options related to cryptocurrencies’.

Now no one is ready to say anything about when this bill will come, or will not come. But in the midst of all this, companies with cryptocurrency have come to the market with a new attitude and are enticing people. According to the companies, the response is very good. At the moment, the need is that in the advertisement of these products, information should be given clearly and people should be warned that there is no law for such investment option and at the same time it has not got any legal recognition. This should be said in a voice-over of at least five seconds.

The question arises: Who will ask them to do it?

(The writer is a senior journalist. Views expressed are personal)