Indian crypto exchange CoinDCX has joined a voluntary self-regulatory organization in the advertising industry, the Advertising Standards Council of India (ASCI).
Newly turned unicorn, CoinDCX is upping its ante towards advertising compliances and joined ASCI as per a report by Mint.
Further, the report adds that through this membership the exchange wishes to promote transparency in communications and build public confidence in the space.
Opinions of CoinDCX and ASCI on this development
Commenting on the development, Sumit Gupta, co-founder and CEO, CoinDCX, told Mint, “The involvement reaffirms our commitment towards ensuring safety and security for our users and to raise the bar for advertising transparency in crypto space in India. This will boost confidence among the users, and they can use our platform without any apprehension.”
Subhash Kamath, Chairman of ASCI, said, “As ASCI steps into a digital age the nature of advertisers and advertising is changing rapidly. We welcome members representing these new industries, who believe in self-regulation. Collaboration and consultation with all stakeholders are keys to navigating the consumer protection challenges posed in this digital age.”
Regulators demand stricter compliance
In recent months, ads from crypto exchanges have been scrutinized by regulators. Last month the Delhi High Court issued notices to crypto exchanges to seek their responses to a petition which claimed that the disclaimers’ formats used by the exchanges in the advertisements were unsuitable.
The Court had also issued notices to the Government of India, Securities and Exchange Board of India (SEBI) to set up guidelines for crypto exchanges advertising on television.
This development might have prompted CoinDCX to take such a step.
By joining ASCI, CoinDCX is strengthening the credibility of India’s cryptocurrency space. It shows that industry players are mature and cognizant of their responsibilities.
Investment always comes with risks, so self-regulation becomes critical for crypto exchanges. Given that digital assets currently fall in the ‘grey area’, crypto exchanges complying with conventional financial laws make the industry more reliable. It helps both the government and users in promoting the industry as compliance builds confidence and trust.