SEBI and Crypto-assets

SEBI and Crypto-assets

Subject: Economy

Section: banking and finance

SEBI has told lawmakers that consumer protection and enforcement of any regulatory regime over crypto assets would be challenging due to the decentralised nature of the digital instruments.

Key recommendations:

• It doesn’t seek a ban on crypto trading.
• It said that crypto assets related to the unregulated activities may be entrusted to an investigating authority appointed by the government.
• Clarity needs to be brought on whether cryptocurrencies can be legally defined as securities.
• There is a need for feature-based characterisation of crypto assets which may attract supervision of different sectoral regulators.
• Delineate the role for different regulators and authorities including for regulation purposes, it recommended.
• There could also be a crypto asset referencing goods or services offered by entities, which are not regulated by any sectoral regulator.
• Consumers availing such products should be protected through the Consumer Protection Act, 2019,
• It also suggested possible regulation of crypto trading platforms by the RBI under the FEMA as crypto assets are available for trading in foreign jurisdiction as well and consumers abroad can remit funds to India using such currency.
• It also proposed various measures to the Advertising Standards Council of India.

Advertising Standards Council of India

• ASCI was established in 1985
• It  is a voluntary self-regulatory organization, registered as a not-for-profit company under Section 25 of the Companies Act, 1956.
• The sponsors of ASCI, who are its principal members, are firms of considerable repute within Industry in India, and comprise Advertisers, Media, Advertising Agencies and other professional /ancillary services connected with advertising practice.
• ASCI is not a Government body. However, ASCI is represented in all committees working on advertising content in every Ministry of the Government of India.
• The aim of ASCI is to maintain and enhance the public’s confidence in advertising.
• Their mandate is that all advertising material must be truthful, legal and honest, decent and not objectify women, safe for consumers – especially children and last but not the least, fair to their competitors.
• The ASCI also invites complaints from consumers against any such unfair, untruthful and false claims and advertisements; all of such complaints are examined independently by the Consumer Complaints Council.