Crypto Code of Conduct will now focus more on warning new users and advertisements.
India’s crypto players are self-regulating themselves for quite a time. The same self-regulatory code may undergo some changes to avoid conflicts with regulators.
Amendment to the Code of Conduct
The Blockchain and Crypto Assets Council (BACC), under the Internet and Mobile Association of India (IAMAI), is working to update the self-regulatory ‘Code of Conduct (COC)’, sources revealed to Economic Times (ET).
BACC acts as a Self-Regulatory Organisation (SRO) for the industry to compensate for the lack of regulations.
Under the proposed updates, crypto platforms may now add warnings underlining the volatility of the assets while onboarding new users. Guidelines for consumer protection and including protection of customer funds, transaction settlement, and consumer-facing communication are being formulated.
BACC is deliberating upon crypto exchanges, Decentralised Finance (DeFi), Non-Fungible Token (NFT) marketplaces, and measures to enhance consumer protection.
“At present, there is no standardised format for terms and conditions and risk warnings. We are trying to bring that as well into the guidelines so that the warnings customers get are the same,” one of the sources said, requesting anonymity.
The self-regulatory code is just a guide. It is not binding, so compliance with the COC is voluntary.
Advertisement Guidelines are Being Discussed
“ASCI has been in advanced talks with several stakeholders including the government in framing its crypto advertising guidelines that will work to protect the consumer’s interests. These are expected to be finalised shortly.”Manisha Kapoor, General Secretary at ASCI (Advertising Standards Council of India)
The row began with the advertising spree during the 2021 ICC Men’s T20 World Cup. Post that, crypto companies have drawn flak from regulators. Even the Board of Control for Cricket in India (BCCI) barred Indian Premier League (IPL) teams from associating with crypto companies.
Lack of regulations has created a hazy path for the crypto industry to tread. Every now and then the industry players run into some roadblock which results in ire from regulators. The same uncertainty also discourages skilled talent from joining the crypto industry.
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