WazirX, CoinDCX, Coinswitch Kuber gets Delhi HC's notice to add disclaimer in TV ads

Responding to plea seeking monitorization of crypto-currency vertisements, Delhi High Court asked leing Indian crypto exchanges — WazirX, CoinDCX, and CoinSwitch Kuber to include ‘standardised’ disclaimers to its vertisements shown on television. Maintaking risk inherited by Indian crypto-asset exchanges, bench presided over by Justices DN Patel and Jyoti Singh passed decision. action from Delhi HC came after India's largest cryptocurrency exchange started getting sponsorship deals for bigwig events like Euro 2020 football championships, Indian Premier League (IPL) cricket tournament, and T20 tour between India and Sri Lanka.

Plea submitted in Delhi HC against Crypto Currency vertisement

petitioners, vocates Aayush Shukla and Vikash Kumar me following claims in ir petition:

• Crypto assets are riskier than tritional equity investment products in share market, mutual funds as well as all or forms of financial products offering investment opportunities.
• Crypto-assets must be given same treatment as mutual funds.
• protection of retail investors who are not aware of inherent characteristics of crypto-assets and ir risk profile must be ensured.

"An ordinary retail investor who views audio-visual vertisement on television run by firms involved on a regular basis, as well as on online websites like Youtube, may suffer immense losses as a result,” petition said.

Delhi HC notice to SEBI, Centre

Following petition, Delhi High Court issued notices to Centre, SEBI (Securities and Exchange Board of India) and or relevant Ministries regarding crypto-currency vertisements. court notice came after plea sought direction to take effective steps against vertisements.  Division Bench sought responses from Ministry of Information and Brocasting, SEBI, and crypto assets companies like M/s Wazir X, M/s CoinDCX and M/s Coinswitch Kuber over its vertising. court h also asked companies to release an explanation. Delhi HC slated furr hearing in matter for August.

Petition was filed by two practicing lawyers, Ayush Shukla and Vikash Kumar who sought direction to SEBI to issue guidelines mandating that disclaimer text cover 80 per cent of screen. It also demanded a voiceover be re in a slow manner and not speed-re like usual practice. petition asked for reing to be lasting five whole seconds, against audio-visual vertisements run by crypto-asset exchanges.