Breaking: India May Soon Ban Crypto Celebrity Endorsements

Crypto endorsement by celebrities in India will soon come to an end with possible talks of law violations. The deals will come to a halt for all major public figures and sportspeople even, suggests SEBI. Along with India, the novel crypto space is highly unregulated in several markets calling for strict rules.
Misleading ads are a violation
The buzz started in the USA before making its way to India. Two influential celebrities had misled investors about uneducated crypto for which they faced multiple lawsuits. Following the fiasco, the immediate question arose. Are Indian celebrities at similar risk? The use of voice from any of the popular figures is not acceptable either for advertisements/endorsements. involving crypto, SEBI made it clear in their response. If the celebrity involved fails to comply with the law, it might lead to a possible violation of the Consumer protection act. Additionally, there is a risk of prosecution for possible violation of other laws including FEMA, BUDS Act, PMLA, etc.
Will violations be penalized?
Celebrities from all fields are highly influential in India. Every statement or claim they make can swing in either direction. This remains true in the very volatile space of cryptocurrency. Because crypto remains unregulated, leaves no room for negligence in this delicate matter. A first-time celebrity violator may be penalized up to ₹10 lakh by the CCPA on account of false claims or even misleading ads. A repeated violation can escalate the fine to a further ₹50 lakh and even lay a ban of up to 3 years for any other products.
“The Finance Ministry has also asked the regulator to give its views on advertisement and also forwarded guidelines by Advertising Standards Council of India (ASCI)”, sources of the Hindu Business Line added. A final decision to bring out a clear set of guidelines to prevent misleading ads under the protection act might roll out soon.
Clarity on crypto taxation
The securities and exchange board of India, SEBI, has recommended if not completely banned celebrity-crypto endorsements. There are no certain regulations governing cryptocurrencies and their usage in India. This calls for the anti-celebrity endorsement rule. The uncertainty around crypto law has been around for a long time.
The categorization of crypto as Virtual digital assets, VDA has been purely for taxational reasons.
“As per the provisions of the proposed section 115BBH to the Income-tax Act, 1961, loss from the transfer of VDA will not be allowed to set off against the income arising from transfer of another VDA,” junior minister for finance Pankaj Chaudhary had said in the parliament.
Additionally, he mentioned that the infrastructure costs incurred in the mining of VDAs will not be considered as cost of acquisition, being capital expenditure in nature, and hence not deductible in arriving at the gains made.
- BlackRock’s Bitcoin ETF Leads ETFs With $3.5B Weekly Inflows as It Eyes $100B in AUM
- MetaMask Launches Hyperliquid Perpetuals In-App, Plans To Integrate Polymarket
- XRP Treasury Holdings Hits $11.5B as Nasdaq-Listed Reliance Global Adds $17M in Fresh Buy
- FOMC Minutes, Jerome Powell Speech: Will Bitcoin Recover or Retrace Further?
- “Meme Coin SZN Is Here,” Says CZ As GIGGLE, 4 Price Skyrocket to All time Highs
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone