Amid news of a regulatory clampdown, cryptocurrency exchanges WazirX and Bitbns plan to stay away from marketing through advertisements for now, reports said.
WazirX will stay away from sponsorship deals and print and television advertisements for now to avoid enticing investors who do not have a clear understanding of virtual currencies, founder Nischal Shetty told Economic Times.
“WazirX currently does not indulge in any TV or print advertisement. With our marketing initiatives, our goal has always been to focus on responsible marketing and spreading education among the masses about crypto,” Shetty said.
Bitbns has paused the ad that claimed that its Bitcoin fixed deposit got the investor a return that is four-time more than bank deposits.
Confirming the development, Bitbns chief executive Gaurav Dahake told Economic Times that though the ad had been paused, the product was still live on the platform.
Indian cryptocurrency exchanges such as CoinSwitch Kuber, WazirX and CoinDCX have been investing big money in advertising to attract users. Recently, they collectively spend more than Rs 50 crore in advertisements during the ICC T20 World Cup. Earlier, they had sponsored big events like events such as the Indian Premier League (IPL), Euro Cup and Bigg Boss.
According to critics, these ads could lure the youth into investing in cryptocurrency, an asset class which is notorious for wild price swings, without knowing the risks.
Aggressive advertising by crypto startups has irked the Centre which plans to take steps to prohibit ads that promise big returns to investors.
Prime Minister Narendra Modi met crypto industry players on Saturday and reached a consensus that such advertisements should be curbed as they were misleading the youth.
“The government is cognizant of the fact that
The government is also working on a bill on cryptocurrency that could be introduced in Parliament during the Winter Session.
As there are no clear guidelines for crypto advertisement, self-regulatory body Blockchain and Crypto Assets Council is in the process of formulating guidelines. Following discussions, all cryptocurrency exchanges issued a disclaimer in the ads during the ICC T20 World Cup, albeit in different forms.
(Edited by : Anshul)
First Published: IST